Be prepared taxpayers; first installment of advance tax due tomorrow

Key Highlights: 

• Installment of advance tax needs to be deposited on or before a particular date 
• By end of March 2018, 100% of advance tax payment will be levied
• E-payment is mandatory for all corporate advance tax filings 

If you are efficient tax payer then be prepared the first installment of advance tax payment is due tomorrow.

Advance Tax Payment is an option provided by the Income Tax Department for tax payers – where they make payment of their taxable amount into installments rather than bearing the burden of total sum to be paid at year end.

These installment needs to be deposited on or before a particular date scheduled by the department.

IT-department has earlier circulated an advertisement mentioning that last date to pay your first installment of advance tax is scheduled on June 15, 2017.

Payers

Taxpayers including salaried employees – whose tax liability for the financial year as reduced by the tax deducted or collected at source is Rs 10,000 or more is liable to pay advance tax.

Exempted

People that exempted from advance tax are resident senior citizen (individual whose age is above 60 years) not having income from business or profession.

Mode of Payments

E-payment is mandatory for all corporate advance tax filings and also for assessees whose accounts are needed to be audited under Section 44AB of the Income Tax Act.

Also, the e-payment can be considered as a convenient option for other taxpayers as it ensures correct credit.

Dates for advance tax payment.

The department has provided four installment dates for advance tax payments.

15% of advance tax payable on or before June 15, 2017.

45% advance tax payable till end of September 15, 2017.

75% of advance tax payable on or before December 15, 2017.

On or before March 15, 2017, tax payers will have to pay 100% advance tax.