Introduction: Navigating the complex world of advance tax payments is crucial for fiscal responsibility. This comprehensive guide breaks down the due dates for FY 2023-24, calculation methods, exemptions, TDS insights, and consequences of non-payment.
Advance Tax Payment Due Dates & Calculator: When do you have to pay it?
What are the dates for advance tax payments for FY 2023 24?
The due dates for advance tax payments for FY2023-2024 are as below:
15% of advance tax – Before 15th June 2023
45% of advance tax minus advance tax already paid – Before 15th September 2023
75% of advance tax minus advance tax already paid – Before 15th December 2023
100% of advance tax minus advance tax already paid – Before 15th March 2024
How is advance tax calculated?
The steps to calculate advance tax is as below:
- Estimate the total income from all the sources earned from April 2023 till the end of March 2024.
- Then you need to subtract all eligible exemptions and deductions.
- Once you arrive at the amount computed above, compute the tax as per the tax regime you have opted based on the tax slab.
- Finally, reduce the tax amount computed above which you would have paid by way of TDS or TCS.
Who are exempted from paying advance tax?
Advance tax needs to be paid by every assessee with a tax liability exceeding INR 10,000 for the year. However, senior citizens need not pay the advance tax provided they satisfy some of the specified conditions.
How do I pay my advance tax offline?
Below are the steps to pay advance tax offline:
- You need to visit a bank branch and request the tax payment challan form-Challan 280 applicable in this case.
- Then you need to fill in all the details as needed in the form.
- Then you need to proceed to the relevant bank’s counter and furnish the filled-in Challan 280 form along with the tax amount.
- Once the above steps are completed and the challan along with the tax has been submitted, the bank official will provide a receipt.
What is the last date of the TDS payment?
As per Section 200 of the Income Tax Act, TDS must be deposited by the tax deductor to the tax authorities within the specified time. As per the current regulations, the deductor needs to deposit the TDS with tax authorities by the 7th (seventh) day of the next month.
The due date to submit TDS that was deducted in March for the government authorities is 7th April and 30th April for all other deductors
Is advance tax paid on salary?
Advance tax is not paid on salary. The employer deducts TDS as per the applicable slab rate of the employee.
Is advance tax paid shown in 26AS?
Yes, advance tax paid by the taxpayer is reflected in form 26AS.
Can advance tax be refunded?
In case a taxpayer’s balance of advance tax under Form 26AS exceeds his tax liability under the ITR filed by him, the income tax officer could approve the tax refund. Or else, you can also furnish Form 30 for requesting a review of the income tax paid against the income tax liability.
What is the limit for TDS?
The TDS limit is shown in the table below:
|
TDS Section List |
Nature of Payment | Threshold (₹) | For Individual / HUF | For Others |
| 192 | Payment made as salaries | ₹ 2,50,000 | Slab Rates | Slab Rates |
| 192A | Early withdrawal of EPF (Employee Provident Fund) | ₹ 50,000 | 10% | 10% |
| 193 | Tax deduction at source on interest earned on securities | ₹ 10,000 | 10% | 10% |
| 194 | Distribution of dividends | ₹ 5,000 | 10% | 10% |
| 194A | Interest from banks or post offices on deposits | ₹ 40,000 ₹ 50,000 (For senior citizens) |
10% | 10% |
| 194A | Interest from sources other than securities | ₹ 5,000 | 10% | 10% |
| 194B | Winnings of lotteries, puzzles, or games | Aggregate of ₹ 10,000 | 30% | 30% |
| 194BA | Winnings from Online Games | – | 30% | 30%x` |
| 194BB | Winnings of horse races | ₹ 10,000 | 30% | 30% |
| 194C | Payments made to contractors or sub-contractors one-time | ₹ 30,000 | 1% | 2% |
| 194C | Payments made to contractors or sub-contractors on an aggregate basis | ₹ 1,00,000 | 1% | 2% |
| 194D | Commission paid on insurance sales to domestic companies | ₹ 15,000 | Not Applicable | 10% |
| 194D | Commission paid on insurance sales to non-domestic companies | ₹ 15,000 | 5% | Not Applicable |
| 194DA | Maturity of life insurance policy | ₹ 1,00,000 | 5% | 5% |
| 194EE | Payment received from the National Savings Scheme (NSS) by individuals | ₹ 2500 | 10% | 10% |
| 194F | Repurchase of units by UTI (Unit Trust of India) or any mutual fund | No Limit | 20% | 20% |
| 194G | Payments or commissions made on the sale of lottery tickets | ₹ 15,000 | 5% | 5% |
| 194H | Commission or brokerage fees | ₹ 15,000 | 5% | 5% |
| 194I | Rent paid for land, buildings, or furniture | ₹ 2,40,000 | 10% | 10% |
| 194I | Rent paid for plant and machinery | ₹ 2,40,000 | 2% | 2% |
| 194IA | Payment for the transfer of immovable property excluding agricultural land | ₹ 50,00,000 | 1% | 1% |
| 194IB | Rent payment made by an individual or HUF not covered under section 194I | ₹ 50,000 (per month) | 5% | Not Applicable |
| 194IC | Payments made under a Joint Development Agreement (JDA) to individuals or HUF | No Limit | 10% | 10% |
| 194J | Fees paid for professional and technical services | ₹ 30,000 | 10% | 10% |
| 194J | Royalty paid for the sale, distribution, or exhibition of cinematographic films | ₹ 30,000 | 2% | 2% |
| 194K | Income received from units of a mutual fund, such as dividends | ₹ 5,000 | 10% | 10% |
| 194LA | Compensation payment for acquiring certain immovable property | ₹ 2,50,000 | 10% | 10% |
| 194LB | Interest payment on infrastructure bonds to Non-Resident Indians | Not Applicable | 5% | 5% |
| 194LBA(1) | Distribution of certain income by a business trust to its unit holders | Not Applicable | 10% | 10% |
| 194LD | Interest payment on rupee-denominated bonds, municipal debt security, and government securities | Not Applicable | 5% | 5% |
| 194M | Payments made for contracts, brokerage, commission, or professional fees (excluding sections 194C, 194H, 194J) | ₹ 50,00,000 | 5% | 5% |
| 194N | Cash withdrawal exceeding a specified amount from the bank, with filed ITR | ₹ 1,00,00,000 | 2% | 2% |
| 194N | Cash withdrawal from a bank without filing ITR | ₹ 20,00,000 | 2% | 2% |
| 194O | The amount received for the sale of products/services by e-commerce service providers through digital platforms | ₹ 5,00,000 | 1% | 1% |
| 194Q | Payments made for the purchase of goods | ₹ 50,00,000 | 0.10% | 0.10% |
| 194S | TDS on the payment of cryptocurrencies or other virtual assets | Not Applicable | 1% | 1% |
| 206AA | TDS applicable in case of non-availability of PAN | Not Applicable | At a higher rate than: The rate specified by the act 20% The currently applicable rate |
At a higher rate than: The rate specified by the act 20% The currently applicable rate |
| 206AB | TDS on non-filers of Income Tax Return | Not Applicable | The higher of 5% is Twice the rate mentioned in the provision The currently applicable rate | The higher of 5% is Twice the rate mentioned in the provision The currently applicable rate |
What is the salary TDS rate?
The TDS rate for salary is the slab rate pertaining to the employee.
What happens if we don’t pay advance tax?
In case of default of advance tax, penal interest under sections 234B and 234C is applicable Interest of 1 percent per month or part thereof is levied in each section. Section 234B will be levied for the shortfall in tax payment or delays in advance tax payment. Further, Section 234C will be applicable for non-payment or short payment of individual advance tax instalments.
Conclusion: Master the intricacies of advance tax payments to ensure compliance, avoid penalties, and stay in control of your financial responsibilities. Stay tax-savvy and plan your payments strategically for a hassle-free fiscal year.
(Republished with amendments)
