The deadline to pay
the first installment of Advance Tax for the financial year
2019-20 is on 15th June 2019. In case you haven't paid the first installment of
advance tax yet, then this is the best time to pay because the due date is just
a day away. For depositing Advance tax, the individual’s estimated tax liability
should be more than 10,000. Following this, you need to clear advance tax
before the deadline to avoid any interest on the due amount.
Advance Tax
Payment
According to
section 208 of the income tax act, Advance Tax payment is to be paid on the
basis of total income during the year. The individuals are eligible to pay income
tax return only when the total tax liability exceeds Rs. 10,000 during
the financial year. In addition, an assessee has to estimate his total income
for the year and pay the taxes partially or fully in advance.
Who is liable
to pay Advance Tax?
·
Salaried Persons whose tax
calculated more than Rs.10,000 are liable to pay advance tax.
·
Businessman whose tax
calculated more than Rs.10,000 are liable to pay advance tax.
·
Freelancers whose tax
calculated more than Rs.10,000 are liable to pay advance tax.
What's the
rule for senior citizen?
Senior citizens
who do not have any income from business and profession are exempt from paying
Advance Tax. However, salaried employees do not have to pay advance taxes since
their taxes are already deducted at the source when the salary is released.
When to file
advance tax?
As per Finance
Bill 2016-17, an individual has to pay advance tax in four installments.
The first installment is due on 15 June each year in which you have to deposit
15% of the tax liability. Whereas by 15 September, you should have paid 45%, by 15 December 75% of the tax and by 15 March all of it.
Meanwhile, if you filed your income under presumptive taxation scheme, then you
need to pay the whole advance tax in a single instalment on or before 15 March.
Advance Tax
|
Installment
|
Due Date
|
15% of Advance Tax
|
1st Installment
|
15th June
|
30% of Advance Tax
|
2nd Installment
|
15th September
|
30% of Advance Tax
|
3rd Installment
|
15th December
|
25% of Advance Tax
|
4th Installment
|
15th March
|
Tax on Capital gains or casual
incomes arising after 15th March, if any
|
||
What happens
if you miss the June 15 deadline?
The income tax
department will charge a penalty if you fail to pay the advance tax before the
deadline. Paying the advance tax on time helps you plan your tax liability over
the year rather than paying at one go at the end of the financial year.
For more details about advance tax and efiling
of income tax return online visit our website : https://www.allindiaitr.com
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