Know learn how to pay tax earlier than due date to keep away from penalty – India TV

Know learn how to pay tax earlier than due date to keep away from penalty – India TV

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The advance tax deadline is nearing and taxpayers with an earnings tax legal responsibility exceeding Rs 10,000 should pay advance tax by December 15. This “pay-as-you-earn” tax applies to people, companies, and salaried professionals whose post-TDS legal responsibility crosses the mark. It is very important pay advance tax beforehand to keep away from penalties.

In keeping with Part 208 of the Revenue Tax (IT) Act, 1961, taxpayers with an estimated tax legal responsibility of over ₹10,000 in a 12 months, are required to pay tax in installments within the type of advance tax. 

Senior residents, i.e., taxpayers above the age of 60 years through the present monetary 12 months, who should not have any earnings from a job or a enterprise, are exempted from this tax. As per the norms, liable taxpayers who fail to make advance tax funds earlier than the due date will face a penalty curiosity of 1 per cent per 30 days.

What’s ‘Advance tax’?

Advance tax, or “pay as you earn” tax, is earnings tax paid in installments all year long as an alternative of on the finish of the fiscal 12 months. Salaried people should additionally pay advance tax if their legal responsibility after accounting for Tax Deducted at Supply (TDS) exceeds Rs 10,000. 

The fee underneath the Advance tax can be achieved in 4 installments:

  • By June 15: 15% of the tax legal responsibility
  • By September 15: 45% of the tax legal responsibility (adjusted for prior funds)
  • By December 15: 75% of the tax legal responsibility
  • By March 15: 100% of the tax legal responsibility

Easy methods to pay advance tax?

  • Go to the official Revenue Tax Division web site: www.incometax.gov.in
  • Log in utilizing your PAN and password.
  • Now go to the e-pay tax part on the portal
  • Choose the monetary 12 months 2024-25
  • Now, choose “Advance Tax (100)” because the fee kind
  • Use the accessible fee choice as per your feasibility
  • Pay and obtain the receipt



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