Advance Tax in India is the income tax you pay in installments before the financial year ends. Furthermore, in case your total tax liability is exceeding Rs. 10,000/- in a year, it is mandatory for you to pay taxes in advance rather than waiting for ITR Filing. Let’s learn all about Advance taxes through this article.
Eligibility for paying Advance Tax
You must pay advance tax in the following cases:
- You are a salaried employee with extra income from rent, business, or investments.
- You are a freelancer or a business owner with a taxable income.
- You earn money from capital gains, lottery winnings, or dividends.
Stepwise Process to Pay Advance Tax Online
- Visit the Income Tax e-Filing Portal by going to https://www.incometax.gov.in.
- Select “e-Pay Tax” under the quick links section.
- Next step is to choose ITNS 280 for advance tax payment if you are an individual.
- Then provide your essential details such as PAN, assessment year, and type of payment.
- Then choose a payment method and after successful payment, save the Challan 280 receipt for future reference.
What are the due dates for Advance Tax Payments in India?
You can pay advance tax in four installments. These are:
| Due Date | Advance Tax to be Paid |
| June 15 | 15% of total tax |
| September 15 | 45% of total tax |
| December 15 | 75% of total tax |
| March 15 | 100% of total tax |
However, if you miss these deadlines, you will need to pay interest under sections 234B and 234C for delayed return filing.
Conclusion
In conclusion, paying advance tax is a smart way to manage your tax liabilities. It is also good thing to build credibility and if you have any doubts or need assistance with ITR Filing, you can contact our experts at 8881-069-069
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