Jun 14, 2024 03:29 PM IST
Advance tax first instalment payment: Taxpayers are required to pay advance tax in four quarterly payments between June 15 and March 15 of the financial year.
Paying income tax in installments throughout the year rather than paying it all at once at the end of the year is advance tax. The first instalment of advance tax payment for this fiscal year is June 15, 2024. Those with a net income tax liability of more than ₹10,000 in any financial year are obligated to make advance tax payments. This is the estimated tax amount minus the TDS within the financial year. Individuals must make four quarterly payments to prevent incurring penal interest as per the Income Tax Act, 1961.
Who does not have to pay advance tax?
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Taxpayers are required to pay advance tax in four quarterly payments between June 15 and March 15 of the financial year. In case you opt for the presumptive taxation scheme, you must pay advance tax in one payment by March 15. Senior citizens (aged 60 or more) are not required to pay advance tax in case they do not have any income from business or profession.
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What are due dates for Advance Tax payments?
Individuals have to pay advance tax on or before June 15 if there is 15% of the net estimated tax liability, on or before September 15 if 45% of the net estimated tax liability minus advance tax already paid, on or before December 15 if 75% of net estimated tax minus advance tax already paid and on or before March 15 if 100% of net estimated tax minus advance tax already paid.
What happens if you miss advance tax payment?
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Penal interest is charged if you fail to pay advance tax under sections 234B and 234C- 1% per month or part thereof in each section.Â
How can you pay advance tax payments?
You can pay advance taxes using the income tax department’s e-filing portal. You can pay online or with an offline bank challan.Â
