Categories Business

Get Ready To Pay The Heavy Amounts If You Have Missed This Important Deadline!!

The payment date for the advance tax installment is September 15, 2023, and it can be paid both online and offline. According to the rules, advance tax is paid in four payments, on or before the 15th of the final month of each quarter.

What Is Advance Tax?

Advance tax is income tax paid in advance rather than after the fiscal year. Throughout the year, the tax regulations specify when this must be paid. This tax is paid in installments throughout the course of the fiscal year. It is frequently referred to as the ‘pay as you earn’ tax.

Who Is Required To Pay Advance Tax?

According to Section 208 of the Income Tax Act of 1961, all taxpayers with expected tax liabilities of at least Rs 10,000 (after TDS) from the previous year must pay advance tax.

Penalty For Failing To Pay Advance Tax

Each section imposes a penalty interest rate of 1% per month or part thereof. Section 234B imposes penalties for late or missed payments of advanced taxes. Individual advance tax installments that are not paid or short payments are subject to Section 234C.

Advance Tax Payment Deadlines 

  • Each fiscal year, 15% of advance tax must be paid on or before June 15th.
  • On or before September 15, 45 percent of the advance tax is paid.
  • On or before December 15th, pay 75% of the advance tax (less tax previously paid).
  • On or before March 15, pay 100% of the advance tax (less tax previously paid).

How Can I Pay My Advance Tax?

  • Step 1: Go to the Income Tax Department’s website at https://www.incometax.gov.in/iec/foportal/.
  • Step 2: Select e-Pay Tax, input your PAN and mobile number, and then click Continue. Enter the OTP obtained on your registered mobile phone number.
  • Step 3: Select Advance tax.
  • Step 4: Select the assessment year and advance tax from the drop-down menus.
  • Step 5: Enter the tax amount and proceed. Choose a payment method and click Continue.
  • Step 6: To make a payment, click the Pay Now button.

More From Author