Who Needs to Pay Advance Tax in India?

Who Needs to Pay Advance Tax in India?

Advance tax involves paying income tax in installments throughout the year instead of a lump sum at the end. The first installment for this fiscal year is due on June 15, 2024. Individuals with a net income tax liability exceeding ₹10,000 in any financial year are required to make advance tax payments. This amount is the estimated tax minus TDS within the financial year. To avoid penal interest as per the Income Tax Act, 1961, individuals must make four quarterly payments.

Who is exempt from paying advance tax?

Taxpayers must make four quarterly advance tax payments between June 15 and March 15 of the financial year. However, those who opt for the presumptive taxation scheme can make a single payment by March 15. Senior citizens (aged 60 or above) who do not have income from business or profession are exempt from paying advance tax.

Due dates for Advance Tax payments:

Penalties for missing advance tax payments:

If you fail to pay advance tax, penal interest is charged under sections 234B and 234C at 1% per month or part thereof for each section.

How to pay advance tax:

You can pay advance taxes through the income tax department’s e-filing portal, either online or with an offline bank challan.

Source: Hindustan Times

Liked the post? Share this:
editor
editor@nyca.in
No Comments

Post A Comment

Disclaimer

We have taken all steps to ensure that the information on the website has been obtained from reliable sources and is accurate. However, this website is not intended to give legal, tax, accounting or other professional guidance. We recommend appropriate advice be taken prior to initiating action on specific issues.