April 17, 2024

If it’s a must to pay advance tax, December 15 is a crucial day. The second advance tax instalment for the third quarter of the fiscal 12 months 2024 should be deposited by December 15. In case you fail to pay advance tax, you’ll be penalised. Additionally, you will should pay curiosity for the delay. Perceive what advance tax is and when it’s essential to pay it annually.

What Is Advance Tax?

An advance tax fee is made all through the fiscal 12 months fairly than on the finish. It’s paid in instalments based on tax laws.

Who Is Required To Pay Advance Tax?

People having anticipated tax obligations of Rs 10,000 or extra, after accounting for tax deducted at supply (TDS) from the earlier 12 months, are obliged to pay advance tax underneath Part 208 of the Earnings Tax Act, 1961. This is applicable to staff, freelancers, firm house owners, and anybody who earns cash in another way. Then again, these above the age of 60 who don’t conduct any enterprise are immune from advance tax.

When Is Advance Tax Paid?

Advance tax, not like a daily tax, should be paid in instalments fairly than in a single single fee every year. It should be paid each three months. The Earnings Tax Division determines the date. These dates are June 15, September 15, December 15, and March 15 for Fiscal Years 2022-23 and 2023-24.

How A lot Advance Tax Should You Pay?

Even whether it is paid in instalments, advance tax is computed for the total 12 months. You need to assess how a lot tax you could have to pay in a 12 months upfront. After deducting your income, chances are you’ll compute tax on the remaining revenue based mostly in your tax bracket.

Penalties For Failing To Make An Advance Tax Cost

Penal curiosity, outlined by Sections 234B and 234C, pertains to advance tax fee failures. Underneath each clauses, curiosity of 1% per 30 days or a portion thereof is charged. Part 234B offers with late or missed advance tax funds, whereas Part 234C offers with non-payment or underpayment of particular advance tax instalments.

You need to pay no less than 15% of your advance tax by June 15. Whereas 45% of advance tax should be paid by September 15, 75% of advance tax should be paid by December 15, and 100% of advance tax should be paid by March 15.

Test Advance Tax Due Dates

  • 15% of the advance tax should be paid on or earlier than June fifteenth.
  • On or earlier than September fifteenth, 45% of the advance tax (minus tax already paid) should be paid.
  • On or earlier than December fifteenth, 75% of the advance tax (much less taxes beforehand paid) is payable.
  • On or earlier than March 15, the entire advance tax (much less tax beforehand paid) is payable.

How one can Make an Advance Tax Cost

  • Go to the Earnings Tax web site by clicking right here.
  • Click on on “e-Pay tax,” enter your PAN and cellphone quantity, after which enter the OTP you bought.
  • Select “advance tax” from the drop-down field after choosing the evaluation 12 months.
  • Proceed after getting into the tax quantity. Proceed after choosing a fee methodology.
  • Click on “Pay Now” to complete the transaction.

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