Advance tax cost: The deadline to pay the fourth installment of advance tax is March 15. Failing to take action might end in substantial penalties, so it is advisable to settle the cost at this time if you have not already. Advance tax just isn’t paid on the finish of the 12 months however in installments all year long. People whose tax legal responsibility exceeds Rs 10,000 are required to pay advance tax in installments as per the schedule set by the Earnings Tax Division.
Advance tax is paid in installments through the monetary 12 months.
The due dates for cost of advance tax are usually:
- On or earlier than June 15: 15% of the full advance tax legal responsibility.
- On or earlier than September 15: 45% of the full tax legal responsibility minus advance tax already paid.
- On or earlier than December 15: 75% of the full advance tax minus advance tax already paid
- On or earlier than March 15: 100% of the full minus advance tax already paid.
Who has to pay advance tax?
Any taxpayer whose tax legal responsibility exceeds Rs 10,000 after deducting TDS and TCS is required to pay advance tax in 4 installments. If there’s a shortfall in any installment, it must be compensated within the subsequent installment. Based on a media report, when you have not paid any installment for the present 12 months, you possibly can settle your entire advance tax legal responsibility by March 15.
What is going to occur if advance tax just isn’t paid?
Failure to pay advance tax or underestimation of advance tax legal responsibility might appeal to penalties underneath Part 234B and Part 234C of the Earnings Tax Act. Based on Sections 234B and 234C of the Earnings Tax Act, 1961, if advance tax just isn’t paid on time, curiosity costs will probably be levied. It is important to make funds promptly to keep away from penalties. If you happen to delay or underpay advance tax, you can be charged curiosity at a charge of 1% monthly.
Advance tax will be paid on-line by means of the revenue tax division’s web site or at designated financial institution branches. Challans for advance tax funds can be found on-line.
Senior residents (aged 60 years or above) who will not be engaged in enterprise or occupation are exempt from paying advance tax. Nonetheless, this exemption just isn’t relevant if they’ve revenue from capital positive aspects or different sources.
Learn how to pay advance tax on-line?
- Go to the official web site of the Earnings Tax Division.
- Choose the “E-pay tax” choice.
- Enter your PAN and password, and log in.
- Click on on “Advance tax” and select your most well-liked cost technique.
- Click on on the “Make cost now” button to finish the cost.
- As soon as the cost is made, you’ll obtain a receipt as affirmation of your cost.
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