Advance Tax

What is Advance Tax?

Advance tax means paying some of your taxes in advance, bit by bit, throughout the year instead of waiting until the year is over. It's like paying small instalments on your taxes as you earn money.

Who is liable to pay Advance Tax?

Individuals, salaried employees, freelancers, businesses, and professionals whose total tax liability exceeds ₹10,000 in a financial year are liable to pay Advance Tax.

What happens if Advance Tax is not paid or is paid inadequately?

If you don't pay enough Advance Tax or forget to pay it, you might have to pay extra interest and penalties under section 234B and 234C of the Income Tax Act

How can one pay Advance Tax?

You can pay Advance Tax online through the Income Tax Department's website or at authorized bank branches using Challan 280. You can also pay in person at specific bank branches.