Advance Tax Payment: The last date for depositing advance tax payment is very near. If you have not paid your tax yet then hurry up because you have only two days left. If you miss this date, you will have to pay fine and interest. Let us take you through the entire process.
What is advance tax
Paying income tax ahead of time for the current financial year is called advance tax. The money deposited in this is calculated based on estimates. It has to be paid in installments. Later, while filing income tax return, the tax is calculated correctly. If your excess tax has been deducted, it will come back.
Who has to pay advance tax
According to the Income Tax Act, if even after deducting TDS (Tax Deducted at Source) you have to pay tax of more than Rs 10,000, then you will have to deposit advance tax.
For non-payment, the penalty will be this much
If you are not able to pay advance tax on time, you will have to pay interest at the rate of one percent per month. Elderly people above 60 years of age are exempted from paying advance tax.
When and how much tax is to be paid
According to the rules of advance tax, 15 percent tax has to be deposited by June 15. As the next installment, 45 percent tax should be deposited by September 15. December 15 is the last date for the third installment. By this date, 75 percent of your advance tax should be deposited. The last installment comes on March 15. By this date, 100 percent of your advance tax should reach the government.
How to pay advance tax
First of all you have to go to the website of Income Tax Department. After this click on e-pay tax. Then enter your PAN number and Aadhar number. After this an OTP will come, after entering which you will have to select your assessment year and go to the advance tax option. After this, fill the tax amount and choose the payment option and click on Pay Now and sit comfortably at home.
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