Advance tax cost: The deadline to pay the fourth installment of advance tax is March 15. Failing to take action might lead to substantial penalties, so it is advisable to settle the cost today if you have not already. Advance tax shouldn’t be paid on the finish of the 12 months however in installments all year long. Individuals whose tax legal responsibility 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 in the course of the monetary 12 months.
The due dates for cost of advance tax are sometimes:
- On or earlier than June 15: 15% of the whole advance tax legal responsibility.
- On or earlier than September 15: 45% of the whole tax legal responsibility minus advance tax already paid.
- On or earlier than December 15: 75% of the whole advance tax minus advance tax already paid
- On or earlier than March 15: 100% of the whole 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 ought to be compensated within the subsequent installment. According to a media report, when you’ve got not paid any installment for the present 12 months, you may settle the whole advance tax legal responsibility by March 15.
What will occur if advance tax shouldn’t be paid?
Failure to pay advance tax or underestimation of advance tax legal responsibility might appeal to penalties beneath 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 shouldn’t be paid on time, curiosity fees will likely be levied. It’s important to make funds promptly to keep away from penalties. If you delay or underpay advance tax, you’ll be charged curiosity at a price of 1% per 30 days.
Advance tax could be paid on-line by means of the earnings 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 aren’t engaged in enterprise or career are exempt from paying advance tax. However, this exemption shouldn’t be relevant if they’ve earnings from capital positive factors or different sources.
How to pay advance tax on-line?
- Go to the official web site of the Income Tax Department.
- Select the “E-pay tax” choice.
- Enter your PAN and password, and log in.
- Click on “Advance tax” and select your most well-liked cost methodology.
- Click on the “Make payment now” button to finish the cost.
- Once the cost is made, you’ll obtain a receipt as affirmation of your cost.
