The last date for filing advance tax is March 15 this year, failing to do so might result in paying needless penalty on taxes.
The last date for filing advance tax is March 15 this year, failing to do so might result in paying needless penalty on taxes.
Advance tax is required to be paid by any person whose estimated lovability for the year is Rs 10,000 or more. However, a senior citizen (an individual of age 60 years or above), not having income from business or profession is not liable to pay advance tax.
As per the law, taxpayers are required to pay annual estimated tax in four instalments of 15 per cent, 45 per cent, 75 per cent and 100 per cent, on or before June 15, September 15, December 15 and March 15, respectively.
Incase the taxpayer fails to pay the advance tax before the deadline, he/she will be liable for interest under Section 234B and 234C.
If the taxpayer has not paid the advance tax or if the advance tax paid is less than 90% of the total tax liability, interest under Section 234B is levied. The taxpayer will be liable for interest at 1% per month or part of the month from April till the date of payment of tax, reported Livemint.
If advance tax paid in any instalment(s) is less than prescribed percentage of instalment amount, interest under section 234c is levied as followed:
However, if you pay a big portion of your advance tax instalment, then the interest penalty will not be imposed on you.
The taxpayer will not be charged interest if the shortfall is due to under-estimation or failure to estimate the following:
-amount of capital gains
-income won from lotteries, etc
-business income which is accrued under a head for the first time.
How to Pay advance tax
Step 1- Log in to the official website of Income Tax department and visit the e-payment facility.
Step 2- Select the right form for the payments of Advance Tax. It is ITNS 280 for individuals.
Step 3- Choose the correct code for Advance Tax and fill your name, address, PAN, mobile number, etc.
Step 4- Click on proceed. You will now be directed to a payment gateway or net banking page. Make the payment.
Step 5- Once you make the payment you will get a receipt called Challan 280 on the next scene. Save of copy of the receipt.
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