2. What is Advance Tax?
● Also known as “Pay as you earn” scheme.
● It is the tax paid on income earned from
different sources like rent, business, salary,
etc.
● The tax is paid if the tax liability exceeds
Rs.10000 in a financial year.
● The tax should be paid in the same year
when the income was earned.
3. Who has to pay Advance Tax?
● Not for Salaried Individuals as they pay tax
deducted at source.
● Income received by via Capital Gains on
Shares.
● Winnings earned from lottery.
● Rent or income earned from house
property.
5. How to pay Advance Tax?
● Advance Tax can be paid through tax payment challans at bank
branches which are authorised by the Income Tax department. It can
be deposited in authorised banks such as ICICI Bank, Reserve bank
of India, HDFC Bank, Syndicate Bank, Allahabad Bank, State Bank of
India and more.
● Pay it online through Income Tax Department.
6. Advance Tax Calculation
● Determine the
income.
● Minus the
expenses.
● Total Advance Tax.● Total the income.
7. Pay Advance Tax Online
● Go to official
government
website.
● Select the right
challan to pay
your Advance
Tax.
● Fill in the
correct details.
● It is important
to report your
payment after
you’ve made
the payment.
● You will get
details of your
payment
including
challan
number.
● Redirect to
Bank's
NetBanking
Page.Income
should be
rechecked in
this page.
8. Late Payment of Advance Tax
● If an individual forgets to pay the advance
tax by the first deadline, then the individual
has to pay interest.
● The interest is computed as 1% interest on
the defaulted amount for every month until
the tax is paid off completely.
● The same interest penalty will be
applicable if you don’t pay by the second or
third deadline.
9. Advance Tax Payment Schedule
Installment Date Amount Payable
● Not less than 30% of the
advance tax liability
● Not less than 60% of the
advance tax liability
● 100% of tax liability
● On or before September
15th
● On or before December 15th
● On or before March 15th
