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Is It Time To Pay Advance Tax?
Written by Gagandeep Arora - Printed on - Date - 4th Sep 2023
The most talked-about topic at this time of the year is taxing as it is confusing to understand for an individual. The income tax department collects taxes every year in advance from individuals who fall under a specific tax bracket. Advance tax is a vital The total amount is paid in instalments on the specified due dates all year round instead of a lump sum amount paid in the end. This acts as a breather for a taxpayer as you don't have to pay a big sum at the end of the year. It plays an important part in the development of our nation too. So, by paying advance tax on time we benefit not only our society but ourselves too.
What is Advance Tax and Who Is Covered Under It?
As the name suggests Advance Tax is the tax paid in advance before the financial year
ends. In other words, the total amount of the estimated income tax is paid to the Income
Tax department according to the due dates given by them in the same year the income is
received.
The specific section of people who are required to pay Advance Tax as per section 208 of
the Income Tax Act are Individuals with a tax liability of Rs 10,000 or more in a
financial year - liable to pay advance tax. Senior citizens more than 60 years of age
are exempt from this tax.
Payment Due Date for Financial Year 2023-24
The last day of submission of the first instalment of Advance Tax is 15th September 2023
for FY 2023-24. To avoid any error we can refer to the table given below-
ADVANCE TAX INSTALLMENTS FOR SELF EMPLOYED AND BUSINESSMEN
| Instalment Date | Amount Payable |
|---|---|
| On or before September 15th | Not less than 30% of the advance tax liability |
| On or before December 15th | Not less than 60% of the advance tax liability |
| On or before March 15th | 100% of tax liability |
ADVANCE TAX FOR ASSESSEES (apart from the ones who are covered under section 44AD)
| Payment Due Date | Amount to be Paid as Advance Tax |
|---|---|
| On or before 15 June | 15% of the Advance Tax |
| On or before 15 September | 45% of the Advance Tax |
| On or before 15 December | 75% of the Advance Tax |
| On or before 15 March | 100% of the Advance Tax |
Modern times has made the cumbersome process of payment of taxes very simple. The simplest way is to make the payment online sitting in the comfort of your office or home. Otherwise, some challans are accepted by many banks in place of Advance Tax. The detailed procedure to make the payment online is-
-
Open the government’s official website
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp - Choose the challan for the same namely ITNS 280
- Select (0021) Income Tax other than companies
- Select (100) Advance Tax
- Select Assessment Year – 2024-25 which is for FY 2023-24
- Mention all the details necessary as an address, phone number, e-mail, bank name along with the PAN card details.
- The page will direct you to the net banking page of the website.
- Lastly, you will get all the details regarding the advance tax payment made.
- Fill the amount of advance tax to be paid
- Click on confirm
- Download Advance Tax Counter Foil – which will have Challan No, BSR Code, Challan Serial Number, Date of Receipt with Amount Paid and PAN
Advance tax is a fundamental component of the income tax system that ensures a steady stream of revenue for the government while helping individuals and businesses manage their finances efficiently. By adhering to advance tax rules and paying taxes diligently, taxpayers can contribute to more transparent and equitable tax system.
