Advance Tax: A Simplified Guide

 Advance Tax: A Simplified Guide


What is Advance Tax?

Advance tax is a payment made before the end of the financial year. It's also known as "pay as you earn."

When is Advance Tax Payable?


You need to pay advance tax if:


- Your tax liability exceeds ₹10,000 after deducting TDS, TCS, etc.


Exceptions


Senior citizens (60+ years) with no business income are exempt from paying advance tax.


Advance Tax Payment Due Dates


Mark these dates in your calendar:


- June 15: 15% of advance tax payable

- September 15: 45% of advance tax payable

- December 15: 75% of advance tax payable

- March 15: 100% of advance tax payable


Presumptive Scheme

If you've opted for a presumptive scheme under 44AD or 44ADA, you only need to pay one installment by March 15.


Why Pay Advance Tax?


Don't skip paying advance tax! You might face consequences like interest under:


- Section 234A (interest for late filing of return)

- Section 234B (interest for non-payment of advance tax)

- Section 234C (interest for delay

ed payment of advance tax installments)

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