Advance tax is the income tax payable if your tax liability is more than INR 10,000 in a financial year in respect of the total income of the assessee<\/p>\n\n\n\n
Advance tax is paid as you earn income, advance tax is also known as pay as you earn Scheme<\/strong>.<\/p>\n\n\n\n Both Advance tax and Tax Deducted at Source (TDS) is different.<\/p>\n\n\n\n In case of salaried employee tax deducted from their salaries, by the employer, a normal salaried person is not required to pay any advance tax and<\/p>\n\n\n\n \u00a0In the case of\u00a0a senior citizen\u00a0<\/strong>of the age of 60 years or more having income from the head \u201cprofit or Gains of Business or Profession \u201care not required to pay advance tax.<\/p>\n\n\n\n In case of an assessee who has opted for a presumptive scheme under section 44AD or 44ADA is not exempted from the payment of advance tax related to such business or professional income they are required to pay advance tax of the whole amount in one installment on or before the 15th\u00a0March of the financial year.<\/p>\n\n\n\n Due Dates for Payment of Payment Tax<\/strong><\/p>\n\n\n\n Advance tax is payable in installments by specified due dates which are indicated as under:<\/p>\n\n\n\n Now question arises Where to deposit Advance Tax ?<\/strong><\/p>\n\n\n\n Advance Tax Installment should be deposited along with challan\u00a0 No. 280 in the Govt. Treasury (RBI) or any of the authorized branches of nationalized banks.<\/p>\n\n\n\n Interest is payable at the prescribed rates in terms of Section 234C of the Income Tax Act,1961<\/p>\n\n\n\n Let for example<\/p>\n\n\n\n Estimated Tax Liability Means:<\/p>\n\n\n\n All Income XXXX<\/p>\n\n\n\n Less: Deduction u\/s 80 (XXX)<\/p>\n\n\n\n Income after Deduction XXXX<\/p>\n\n\n\n Tax on above XXXX<\/p>\n\n\n\n Less: TDS (XXX)<\/p>\n\n\n\n Advance Tax Liability XXXX<\/p>\n\n\n\n *For 1st<\/sup> installment even if amount paid is 12% of estimated tax liability there is no violation under Income Tax Act.<\/p>\n\n\n\n * For 2nd<\/sup>\u00a0installment even if the amount paid is 36% of estimated tax liability there is no violation under Income Tax Act.<\/p>\n\n\n\n Tax on Income from Capital Gain\/Lottery Income and Unusual income has to be deposited on the due date just after the date on which such income arises.<\/p>\n\n\n\n For Example \u2013 if the capital gain has been made on 16th<\/sup>\u00a0September, then deposit on 15th<\/sup>\u00a0December 75% of Tax Liability.<\/p>\n","protected":false},"excerpt":{"rendered":" Advance tax is the income tax payable if your tax liability is more than INR 10,000 in a financial year in respect of the total income of the assessee Advance tax is paid as you earn income, advance tax is also known as pay as you earn Scheme. Both Advance tax and Tax Deducted at Source<\/p>\nDue dates for payment of Advance Tax<\/td> Advance Tax Installment <\/td><\/tr> By 15th<\/sup> June<\/td> 15% of estimated tax liability<\/td><\/tr> By 15th<\/sup> September<\/td> 30% of estimated tax liability<\/td><\/tr> By 15th<\/sup> December<\/td> 30% of estimated tax liability<\/td><\/tr> By 15th<\/sup> March<\/td> 25% of estimated tax liability<\/td><\/tr> By 15th<\/sup> March<\/td> Tax on capital gain or casual income arising after 15th<\/sup> March, if any<\/td><\/tr> By 15th <\/sup>March<\/td> Tax on income of the assesses who has opted under section 44AD OR 44ADA <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Interest for Non\/Short\/Deferment of payment of Advance Tax<\/strong><\/h3>\n\n\n\n
COMPUTATION OF ADVANCE TAX<\/strong><\/h3>\n\n\n\n