{"id":2198,"date":"2020-12-23T17:24:03","date_gmt":"2020-12-23T11:54:03","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=2198"},"modified":"2021-04-06T10:49:58","modified_gmt":"2021-04-06T05:19:58","slug":"advance-tax","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/advance-tax\/","title":{"rendered":"Are you liable to pay advance tax?"},"content":{"rendered":"\n<p>Paying <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">income tax<\/a> is more like a national responsibility. That said, paying your taxes in advance can relieve you of stress arising from keeping it for the year-end. In this article, we talk about everything you need to know about <a href=\"https:\/\/www.tickertape.in\/blog\/advance-tax-payment\/\">advance tax<\/a>.<\/p>\n\n\n\n<p><strong>The article covers<\/strong><\/p>\n\n\n\n<p><a href=\"#What\">What is advance tax?<\/a><\/p>\n\n\n\n<p><a href=\"#Due-dates\">Advance tax due dates&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Liable\">Who is liable to pay advance tax?&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Presumptive\">Advance tax payment for taxpayers under the purview of presumptive income&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Calculate\">How to calculate advance tax payment?&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Delay\">Delay in the payment of advance tax&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Refund\">Refund of advance tax&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Process\">Process of paying advance tax&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Online\">How to pay advance tax online?&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Offline\">Offline mode of advance tax payment&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#Challan\">Challan for advance tax<\/a><\/p>\n\n\n\n<p><a href=\"#Exemption\">Exemption to advance tax payment<\/a><\/p>\n\n\n\n<p><a href=\"#Advantages\">Advantages of advance tax payment<br><\/a><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#What-is-advance-tax\" title=\"What is advance tax?\">What is advance tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Advance-tax-due-dates\" title=\"Advance\ntax due dates\">Advance\ntax due dates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Who-is-liable-to-pay-advance-tax\" title=\"Who is liable\nto pay advance tax?\">Who is liable\nto pay advance tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Advance-tax-payment-for-taxpayers-under-the-purview-of-presumptive-income\" title=\"Advance\ntax payment for taxpayers under the purview of presumptive income\">Advance\ntax payment for taxpayers under the purview of presumptive income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#How-to-calculate-advance-tax-payment\" title=\"How to calculate advance tax payment?\">How to calculate advance tax payment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Delay-in-the-payment-of-advance-tax\" title=\"Delay in\nthe payment of advance tax\">Delay in\nthe payment of advance tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Refund-of-advance-tax\" title=\"Refund\nof advance tax\">Refund\nof advance tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Process-of-paying-advance-tax\" title=\"Process\nof paying advance tax\">Process\nof paying advance tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#How-to-pay-advance-tax-online\" title=\"How to pay advance tax online?\">How to pay advance tax online?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Offline-mode-of-advance-tax-payment\" title=\"Offline\nmode of advance tax payment\">Offline\nmode of advance tax payment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Challan-for-advance-tax\" title=\"Challan\nfor advance tax\">Challan\nfor advance tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Exemption-to-advance-tax-payment\" title=\"Exemption\nto advance tax payment\">Exemption\nto advance tax payment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/advance-tax\/#Advantages-of-advance-tax-payment\" title=\"Advantages of advance tax payment\">Advantages of advance tax payment<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"What\"><span class=\"ez-toc-section\" id=\"What-is-advance-tax\"><\/span><strong>What is advance tax?<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Paying a portion of your income tax liability for a financial year in advance or before the year-end is called an advance tax. It is payable when your income tax liability for a financial year equals or exceeds Rs 10,000. You only attract advance tax on the income generated in a year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Due-dates\"><span class=\"ez-toc-section\" id=\"Advance-tax-due-dates\"><\/span><strong>Advance\ntax due dates<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Advance tax\npayment is to be done in instalments before the specified due dates.<\/p>\n\n\n\n<p>For\nself-employed and individual businesses, the advance tax due dates and\nspecified instalments are:<\/p>\n\n\n\n<ul><li>30% of advance tax liability to be\npaid on or before 15<sup>th<\/sup> Sep<\/li><li>60% of advance tax amount to be paid\nby 15<sup>th<\/sup> Dec<\/li><li>100% of advance tax liability to be\npaid on or before 15<sup>th<\/sup> Mar<\/li><\/ul>\n\n\n\n<p>For corporates,\nthe advance tax due dates and\nspecified instalments are:<\/p>\n\n\n\n<ul><li>At least 15% of the advance tax\nliability to be paid on or before 15<sup>th<\/sup> Jun<\/li><li>At least 45% of the advance tax\nliability to be paid by 15<sup>th<\/sup> Sep<\/li><li>At least 75% of the advance tax\nliability to be paid on or before 15<sup>th<\/sup> Dec<\/li><li>100% of advance tax liability to be\npaid by 15<sup>th<\/sup> Mar<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Liable\"><span class=\"ez-toc-section\" id=\"Who-is-liable-to-pay-advance-tax\"><\/span><strong>Who is liable\nto pay advance tax?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All categories of taxpayers including freelancers, salaried individuals, professionals, and senior citizens are liable to pay advance tax if the total tax liability for a financial year after adjusting <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-tds-and-how-to-file-it\/\">TDS<\/a> is over Rs 10,000. A list is:<\/p>\n\n\n\n<ul><li>Your tax liability after TDS is Rs 10,000 or more<\/li><li>You are a self-employed or a salaried individual<\/li><li>You have earned capital gains on the sale of shares<\/li><li>You have earned interest on fixed deposits<\/li><li>You have received lottery income<\/li><li>You receive rent or income from house property<\/li><li>NRIs whose accrued income in India exceeds Rs 10,000<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Presumptive\"><span class=\"ez-toc-section\" id=\"Advance-tax-payment-for-taxpayers-under-the-purview-of-presumptive-income\"><\/span><strong>Advance\ntax payment for taxpayers under the purview of presumptive income<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Businesses\nor professionals including (architects, lawyers, doctors, and consultants) under\nthe purview of presumptive tax regime of Section 44AD are required to pay 100% advance\ntax liability by 15<sup>th<\/sup> Mar of the financial year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Calculate\"><span class=\"ez-toc-section\" id=\"How-to-calculate-advance-tax-payment\"><\/span><strong>How to calculate advance tax<\/strong><strong> payment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can compute\nyour advance tax liability by following these steps:<\/p>\n\n\n\n<p>Step 1: Ascertain\nyour estimated income other than salary for the given financial year<\/p>\n\n\n\n<p>Step 2:\nDeduct your expenses such as rent, <a href=\"https:\/\/www.tickertape.in\/blog\/effective-money-saving-travel-hacks\/\">travel<\/a>, and internet<\/p>\n\n\n\n<p>Step 3: Add\nyour salary income, if any<\/p>\n\n\n\n<p>Step 4: Subtract\nTDS already deducted or likely to be deducted<\/p>\n\n\n\n<p>Step 5: Compute\ntax payable as per your applicable income tax slab<\/p>\n\n\n\n<p>Step 6: In\ncase your tax liability after deducting TDS payment exceeds Rs 10,000, then you are liable\nto pay advance tax<\/p>\n\n\n\n<p>Alternatively,\nyou can also calculate your advance tax liability using the advance tax calculator available on the income tax department\u2019s\nwebsite.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Delay\"><span class=\"ez-toc-section\" id=\"Delay-in-the-payment-of-advance-tax\"><\/span><strong>Delay in\nthe payment of advance tax<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you delay paying advance or pay less than 90% of the assessed\/calculated tax amount, you attract a penalty of 1% monthly under Section 234B. The penalty is calculated as 1% interest on the defaulted amount for every month until you pay the advance tax completely. This penalty is applicable for the remaining instalments too.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Refund\"><span class=\"ez-toc-section\" id=\"Refund-of-advance-tax\"><\/span><strong>Refund\nof advance tax<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\ncontrast, had you paid more than the advance tax liability, you can claim a\nrefund of the excess amount by submitting Form 30 within a year from the last\nassessment year. If the amount of advance tax paid is more than 10% of the\nliability, the Income Tax Department will pay you an interest of 6% p.a.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Process\"><span class=\"ez-toc-section\" id=\"Process-of-paying-advance-tax\"><\/span><strong>Process\nof paying advance tax<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can pay advance tax either online or offline. Both modes are explained below.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Online\"><span class=\"ez-toc-section\" id=\"How-to-pay-advance-tax-online\"><\/span><strong>How to pay advance tax online<\/strong><strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Step 1:\nVisit <a href=\"http:\/\/www.tin-nsdl.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Income Tax Department\u2019s online tax\npayment portal<\/a><\/p>\n\n\n\n<p>Step 2: Click on \u201cServices\u201d and then e-payement: Pay Taxes Online and select \u201cProceed\u201d against <a href=\"https:\/\/www.tickertape.in\/blog\/income-tax-payment-using-challan-280\/\">Challan 280<\/a><\/p>\n\n\n\n<p>Step 3: Choose\nType of Payment as (100) Advance Tax<\/p>\n\n\n\n<p>Step 4: Key\nin the required details such as address, assessment year, mode of payment. Enter\nthe captcha code and click on \u2018Proceed\u2019<\/p>\n\n\n\n<p>Step 5: Wait\nto be redirected to the online payment portal<\/p>\n\n\n\n<p>Step 7: Here,\nverify your advance tax\npayment amount<\/p>\n\n\n\n<p>Step 7: Save\nthe payment challan for your reference when filing ITR<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Offline\"><span class=\"ez-toc-section\" id=\"Offline-mode-of-advance-tax-payment\"><\/span><strong>Offline\nmode of advance tax payment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Alternatively,\nyou can also pay advance tax\nvia offline mode. You can do so by submitting the challan at a bank authorised\nby the Income Tax Department.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Challan\"><span class=\"ez-toc-section\" id=\"Challan-for-advance-tax\"><\/span><strong>Challan\nfor advance tax<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You are required to submit Challan 280 to make an advance tax payment online.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Exemption\"><span class=\"ez-toc-section\" id=\"Exemption-to-advance-tax-payment\"><\/span><strong>Exemption\nto advance tax payment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Senior citizens aged 60 yrs and\nabove and not involved in business or profession are exempted from paying the\nadvance tax<\/li><li>If the amount of TDS payment made is more than\nthe tax liability for the year<\/li><li>In case your income attracts TDS.\nFor instance salary income. However, you need to pay advance tax on income\nother than salary<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Advantages\"><span class=\"ez-toc-section\" id=\"Advantages-of-advance-tax-payment\"><\/span><strong>Advantages of advance tax payment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Paying advance tax reduces your\nstress of paying it in lump at the last moment. This is especially helpful for\nbusinesses as their income tax liability can be huge<\/li><li>It gives the government a regular\nsource of income to meet development purposes<\/li><li>It saves you from defaulting on your\nadvance tax payment<\/li><li>It gives you an idea of the income\nthat you earn during the year<\/li><\/ul>\n\n\n\n<p>Paying advance tax is like paying EMIs to the Income Tax Department. Regular payment of the same relieves you of stress. Moreover, if you are liable to pay advance tax and fail to do so, you attract a penalty that adds to your overall expenses. Ergo, consider paying advance tax instalments on time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paying a portion of your income tax liability for a financial year in advance or before the year-end is called an advance tax. It is payable when your income tax liability for a financial year equals or exceeds Rs 10,000<\/p>\n","protected":false},"author":27,"featured_media":2285,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[8,1741],"tags":[189,173],"acf":[],"modified_by":"Manonmayi","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/12\/Advance-taxes.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2198"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=2198"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2198\/revisions"}],"predecessor-version":[{"id":2286,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2198\/revisions\/2286"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/2285"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=2198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=2198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=2198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}