Advances Tax

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)

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