Under the scheme of advance payment of tax (pay as you earn), an assessee is required to pay tax in a particular financial year preceding the assessment year on the basis of his estimated income. This means though the income earned during previous year 2016-17, is taxable in assessment year 2017-18, tax on such income is payable during financial year 2016-17 itself under the scheme of A.P.O.T
Every person is liable to pay advance tax. If advance tax payable is less or more, however a senior citizen, who has income from business or profession, is not liable for payment of advance tax.
When advance tax becomes due?
With effect from previous year 2016-17 i.e. basement year 2017-18 for an individual, advance tax is payable in 4 installments.
|Advance tax payment due date||% of advance tax payable by due date|
|On or before 15-6 of previous year||15% of total advance tax payable|
|On or before 15-9 of previous year||45% of total advance tax payable|
|On or before 15-12 of previous year||75% of total advance tax payable|
|On or before 15-3 of previous year||100% of total advance tax payable|
Advance tax payable = Tax on income declared in the return or income – TDS (if any)