Advance Tax means any tax payable by the assessee after deducting prepaid taxes such as TDS, relief etc. on his estimated income before the end of Financial Year if such income is chargeable to tax.
When is Advance-tax payable?
A person is liable for payment of Advance Tax if Amount of tax payable after considering TDS is greater than or equal to Rs.10,000/-. In case tax liability after considering TDS is less than Rs 10,000/-, Advance Tax is not applicable.
Who is exempted from payment of Advance Tax?
- Senior Citizens not having income from business or profession.
- Others having Tax Liability less than Rs 10,000/- after considering TDS and Tax Relief on Income.
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