All about Advance Tax:

Due Dates, Applicability, Procedure, Installment Details.

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What is Advance Tax?

Advance Tax Table

Point Description
Definition A system of paying income tax periodically throughout the year.
Applicability Required if total tax liability exceeds ₹10,000 in a financial year.
Who Should Pay Salaried individuals, freelancers, businesses, except senior citizens.
Purpose Ensures timely tax payments, helps avoid penalties and manage cash flow.
Presumptive Income Taxpayers Pay entire tax liability by 15th or 31st March under sections 44AD/44ADA.

Who Should Pay Advance Tax?

Salaried individuals, freelancers and businesses

If your total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. The advance tax applies to all taxpayers, salaried individuals, freelancers, and businesses.

Senior citizens

People aged 60 years or more who do not run a business are exempt from paying advance tax. So, only senior citizens (60 years or more) having business income must pay advance tax.

Presumptive income for businesses

The taxpayers who have opted for the presumptive taxation scheme under section 44AD have to pay the whole amount of their advance tax in one instalment on or before 15th March. They also have the option to pay all of their tax dues by 31st March.

Presumptive income for professionals

Independent professionals such as doctors, lawyers, architects, etc. come under the presumptive scheme under section 44ADA. They have to pay the whole of their advance tax liability in one instalment on or before 15th March. They can also pay the entire amount by 31st March.

Advance Tax Payment Due Date & Amount

Why Pay Advance Tax?

Avoid Penalties

Timely payments help you steer clear of penalties for late or non-payment.

Smooth Cash Flow

Spreading your tax payments throughout the year aids cash flow management.

Compliance

Staying up-to-date with tax payments keeps you in good standing with tax authorities.

Peace of Mind

No last-minute scramble to pay large tax bills when the year ends

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