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Advance Tax – Who Should Pay and When?
Author - CA Sana Baqai
What is Advance Tax?
We earn income during the previous
year, but we furnish the details related
to income and taxes after completing the
previous year. However, it is required to
pay the tax in the previous year itself
instead of the assessment year for a
certain category of taxpayers. Such tax
paid during the previous year is called
advance tax.
Who is required to pay advance tax?
Any person whose tax liability for the year is more than Rs. 10,000 is required
to pay advance tax.
Who is not required to pay advance tax?
o Advance tax is not payable by a resident senior citizen or super senior
citizen who does not have business income.
o Any assessee whose tax liability does not exceed Rs. 10,000.
When to pay advance tax?
Advance tax is paid in instalments during the previous year. The due dates
are as under:
Taxpayer Type By 15th
June
By 15th
September
By 15th
December
By 15th
March
All types of taxpayers
(other than those who
opted for presumptive
taxation scheme)
Upto 15% of
advance tax
Upto 45%
of advance
tax
Upto 75%
of
advance
tax
Upto
100% of
advance
tax
Taxpayers who opted
for the presumptive
taxation scheme under
section 44AD and
44ADA
NIL NIL NIL Upto
100% of
advance
tax
Consequences of not paying advance tax
If the advance tax is not paid or short paid or not paid as per the instalments
mentioned above, interest under section 234B and 234C shall be levied.

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Advance tax - Who should pay and when? | CA Sana Baqai

  • 1. Advance Tax – Who Should Pay and When? Author - CA Sana Baqai What is Advance Tax? We earn income during the previous year, but we furnish the details related to income and taxes after completing the previous year. However, it is required to pay the tax in the previous year itself instead of the assessment year for a certain category of taxpayers. Such tax paid during the previous year is called advance tax. Who is required to pay advance tax? Any person whose tax liability for the year is more than Rs. 10,000 is required to pay advance tax. Who is not required to pay advance tax? o Advance tax is not payable by a resident senior citizen or super senior citizen who does not have business income. o Any assessee whose tax liability does not exceed Rs. 10,000. When to pay advance tax? Advance tax is paid in instalments during the previous year. The due dates are as under: Taxpayer Type By 15th June By 15th September By 15th December By 15th March All types of taxpayers (other than those who opted for presumptive taxation scheme) Upto 15% of advance tax Upto 45% of advance tax Upto 75% of advance tax Upto 100% of advance tax Taxpayers who opted for the presumptive taxation scheme under section 44AD and 44ADA NIL NIL NIL Upto 100% of advance tax Consequences of not paying advance tax If the advance tax is not paid or short paid or not paid as per the instalments mentioned above, interest under section 234B and 234C shall be levied.