Income Tax: What is Advance Tax and who has to pay? Check last date, penalties and how to pay online
Income Tax: Advance Tax is paid in four instalments within the same financial year the income is earned.
Income Tax Advance Tax Payment: The last date to pay the fourth instalment of Advance Tax is March 15. If taxpayers haven't submitted the final instalment of Advance Tax, then they will be liable to pay penalties under Sections 234B and 243C.
The Advance Tax can be paid by account. With the help of Advance Tax receipts, the government gets a flow of income throughout the year to meet the expenses.
Advance Tax is paid in four instalments within the same financial year the income is earned. The first instalment of 15 per cent of the total tax liability must be paid by June 15, while 45 per cent must be paid by September 14. By December 15, the liability is 75 per cent which includes the June and September instalments. The last and full instalment is due by March 15.
The Advance Tax is paid by individuals who have sources of income other than their salary. This includes income from rent, capital gains, fixed deposits, lottery winnings, etc. Taxpayers who earn Rs. 10,000 and above are required to pay advance tax.
Income Tax: Who is exempted from paying Advance Tax
Senior citizens (above 60 years of age) are exempted from paying the Advance Tax. Taxpayers who fall under the TDS net are also exempt from paying Advance Tax.