Advance Tax is a form of Income Tax which is payable in installments instead of Lumpsum Payment at the year end and should be made before the due dates specified by Income Tax Department. It is an obligation to pay advance tax whoever needs to pay such.
Know more about the Advance Tax, Due Dates, Installments, Exceptions, Calculation, Consequences for Non-Payment, Non-Applicability of Interest u/s 234C
Advance Tax is required to be paid if the estimated tax liability is more than Rs 10,000 in a year.
This document covers
The Advance Tax payment schedule for both the companies and Non-Companies (except for 44AD and 44ADA) are as follows
|S.No||Due Date of Installment||Amount of Installment|
|1||On or before 15 th June||15% of Tax Liability|
|2||On or before 15th September||45% of Tax Liability|
|3||On or before 15th December||75% of Tax Liability|
|4||On or before 15th March||100% of Tax Liability|
Note: Any Amount paid by way of advance tax on or before March 31 is also treated as advance tax paid during the financial year
In order to reduce genuine compliance hardship, some exceptions are provided regarding payment of advance tax
Note: Any Amount paid by way of advance tax on or before March 31 is also treated as advance tax paid during the financial year.
Visit How to pay Income Tax due Online in India? to get the detailed instructions.
Make sure you select Type of Payment: (100) ADVANCE TAX.
If the amount paid as advance tax is higher than the total tax liability, the assesse will receive the excess amount as a refund. Interest @ 6% per annum will be paid by the Income Tax department to the assesse on the excess amount if the amount is more than 10% of tax liability.
Interest u/s 234B and 234C are charged if the advance tax is not paid by the taxpayer at specified due dates
Interest u/s 234C is not levied in the following cases if the income consists of following incomes
GST Accounting Software Price: FREE for 1st year in India refer pricing for other countries such as India, Australia, Malaysia, Nepal, Pakistan, Singapore, Sri Lanka, & UK
Easiest GST ready Accounting software