Advance Tax Payment: Here's All You Need To Know

Advance Tax payment is an option given by the Income Tax department to pay the taxable amount in instalments instead of the total sum to be paid at year end. The instalments need to be deposited on or before the particular date provided by the tax department. Non-payment or deferment of payment of Advance Tax will result in levy of interest, the Income tax department noted. The schedule for payment of Advance Tax has been categorised in four parts by the tax department. The first instalment is required to be paid on or before June 15.

Which taxpayers are liable to pay Advance Tax?

Any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted or collected at source is Rs 10,000 or more.

Who are exempted?

Resident senior citizens (60 years or above) not availing income from business or profession are not liable to pay.

Mode of payment:

E-payment is mandatory for all corporate advance tax filings and those assessees whose accounts are required to be audited under Section 44AB of the Income Tax Act. The e-payment mode is also considered as a convenient option for other taxpayers as it ensures correct credit.

Schedule for payment of Advance Tax:

1. Till June 15, 15 per cent of the Advance Tax payable.

2. 45 per cent of the Advance Tax payable till September 15.

3. On or before December 15, 75 per cent of the tax amount payable.

4. 100 per cent of the Advance Tax payable till March 15, 2018.