Image Source : FILE PHOTO Representative image
Advance tax payment: The deadline to pay the fourth installment of advance tax is March 15. Failing to do so may result in substantial penalties, so it’s advisable to settle the payment today if you haven’t already. Advance tax is not paid at the end of the year but in installments throughout the year. Individuals whose tax liability exceeds Rs 10,000 are required to pay advance tax in installments as per the schedule set by the Income Tax Department.
Advance tax is paid in installments during the financial year.
The due dates for payment of advance tax are typically:
On or before June 15: 15% of the total advance tax liability.
On or before September 15: 45% of the total tax liability minus advance tax already paid.
On or before December 15: 75% of the total advance tax minus advance tax already paid
On or before March 15: 100% of the total minus advance tax already paid.
Who has to pay advance tax?
Any taxpayer whose tax liability exceeds Rs 10,000 after deducting TDS and TCS is required to pay advance tax in four installments. If there is a shortfall in any installment, it should be compensated in the next installment. According to a media report, if you have not paid any installment for the current year, you can settle the entire advance tax liability by March 15.
What will happen if advance tax is not paid?
Failure to pay advance tax or underestimation of advance tax liability may attract penalties under Section 234B and Section 234C of the Income Tax Act. According to Sections 234B and 234C of the Income Tax Act, 1961, if advance tax is not paid on time, interest charges will be levied. It’s essential to make payments promptly to avoid penalties. If you delay or underpay advance tax, you will be charged interest at a rate of 1% per month.
Advance tax can be paid online through the income tax department’s website or at designated bank branches. Challans for advance tax payments are available online.
Senior citizens (aged 60 years or above) who are not engaged in business or profession are exempt from paying advance tax. However, this exemption is not applicable if they have income from capital gains or other sources.
How to pay advance tax online?
Go to the official website of the Income Tax Department.
Select the “E-pay tax” option.
Enter your PAN and password, and log in.
Click on “Advance tax” and choose your preferred payment method.
Click on the “Make payment now” button to complete the payment.
Once the payment is made, you will receive a receipt as confirmation of your payment.
Also Read: Stock markets: Sensex falls 315 points, Nifty declines over 100 points to 22,045 in early trade
Also Read: Are you Paytm FASTag user? Here is step-by-step guide to deactivate, port or buy to new FASTag
