All about Advance Tax

What is Advance tax?

Advance Tax is applicable to all taxpayers including salaried one's, if the total tax liability for a Financial Year after deducting TDS and tax relief is Rs.10,000/- or more.
To calculate your Advance Tax liability, click here

When to pay?

The Due dates for payment of Advance Tax have been amended by the Finance Act 2016 from Financial Year 2016-17. As per the amended provisions, Advance Tax is required to be paid in four installments of 15%, 45%, 75% and 100% of tax payable on the current Income by 15th June, 15th September, 15th December and 15th March respectively.

Earlier till FY 2015-16, the taxpayers other than corporate taxpayers were required to pay Advance Tax in three Installments. 

Taxpayers covered u/s 44AD and 44ADA need to pay Advance Tax of the whole amount in one installment on or before the 15th March of the financial year. An option has been given to section 44AD taxpayers to pay their Advance Tax due by 31st March.

Advance Tax liability for all taxpayers (other than covered under section 44AD and 44ADA of the Income Tax Act, 1961)

Advance Tax liability for taxpayers covered under section 44AD and 44ADA of the Income Tax Act, 1961

 What if I don’t pay?

1% Interest per month is payable for non payment/short payment of Advance Tax u/s 234B & 234C of Income-tax Act. 

Who are exempted from paying Advance Tax?

Exemption for payment of Advance Tax is provided to the following persons:

    1. Senior Citizen who does not have any Income from Business or Profession.

    2. Taxpayers having Tax Liability less than Rs 10,000/- after considering TDS and Tax Relief on Income.

How do I pay this Advance Tax?

1)    Visit the url https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and select challan number ITNS 280.

2)    On the page, fill all mandatory fields and do remember to follow these points:

1. Select Tax Applicable (0021) Income-Tax (Other Than Companies).

2. Select Assessment Year (take precaution here and re-confirm your selection).

3. Select (100) Advance Tax as type of payment.

4. Select the bank through which the payment has to be done.

Enter captcha code and click on ‘Proceed’ button.

3) Verify the details entered and click on the button ‘Submit to the Bank’.

4) You will be re-directed to your net banking account log page. Enter to make the payment.

5) Enter the total tax amount in the field ‘Basic Tax’ and click on the button Submit to make payment.

 6) Once the payment is confirmed you will get challan counterfoil with all details of payment (BSR code, Challan number, Challan Date and Challan amount). Keep these details safe for future use.

Or you can visit a nearby nationalized bank and make the payment through a challan.

Whether a Non-Resident Indian (NRI) or a Non-Resident is required to pay Advance Tax in India?

Yes. The Advance Tax is applicable on to them if they have any Income accrued during the Financial Year in India.

How do I show Advance Tax details in my Income-tax return?

You are required to provide challan details to your employer before the end of the financial year so that they will consider it in your Form-16 and deduct TDS accordingly. If you miss it, you can further declare it while filing your Income-tax return in the Advance Tax section/ page under Tax Paid option.

myITreturn.com provides you a unique advance tax estimator through which you can calculate your exact Advance Tax liability and pay it within the due date. 

For any support on Advance Tax, please submit a request from here.