Under Income Tax Act, 1961 certain type of Assessee are required to Pay Advance Tax in 4 Instalments. Short or Non Payment of Advance Tax tax results in levy of Interest Under Section 234A, Section 234B and Section 234C of Income Tax Act, 1961. Advance Tax Instalment falls every Year on 15th June, 15th September, 15th December and 15th March and Assessee needs to pay 15%, 45%, 75% and 100%  of the Advance Tax payable.

Advance Income Tax Provisions explaining Taxpayers liable to pay Advance Tax, Mode of Advance Tax Payment and Schedule for payment of Advance Tax is as follows:-

 

Taxpayers liable to pay Advance Tax

Mode of Payment Schedule for payment of Advance Tax
 

  • Any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted/collected at source is Rs. 10,000/- or more.
  • Resident Senior Citizen ( individual who is of the age of 60 years or more) not having income from business/ profession, is not liable to pay.
  • Assessee in respect of eligible business referred to in Section 44AD is liable to pay whole amount of such Advance Tax on or before 15th March of respective Financial Year.
♠ e-payment is mandatory for all Corporates and also those assessees whose accounts are required to be audited u/s 44 AB of the Income tax Act.

♠ e-payment is convenient for other taxpayers also as it ensures correct credit.

Due Date Amount
a) On or before 15th of June 15% of the Advance Tax payable.
b) On or before 15th of September 45% of the Advance Tax
b) On or before 15th of December 75% of the Advance Tax payable.
c) On or before 15th of March. 100% of the Advance Tax payable

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3 Comments

  1. P V Shankar Narayanan says:

    I was company’s payroll and was not an iT assessee.
    After my retirement the company has retained as
    consulant. From the remuneration receivable by me
    which Rs.18000/- only p.m. they are deducting TDS
    @ 10%. Now how to apply for refund of the amount
    TDS amount deducted for income tax department.

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