Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. Advance tax applies to all tax payers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax.
Presumptive Businesses– Taxpayers who opt for presumptive scheme where business income is assumed at 8% of turnover of less than ₹2 crore are exempt from advance tax for FY 2017-18.
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What is the due date for payment of Advance Tax?
|Due Date||Advance Tax Payable|
|On or before 15th June||15% of advance tax|
|On or before 15th September||45% of advance tax|
|On or before 15th December||75% of advance tax|
|On or before 15th March||100% of advance tax|
What is the Interest of Late Payment of Advance Tax?
Interest on late payment of Advance Tax is as follows
- Interest under section 234C – Interest @ 1% per month is payable if the tax is not paid as per the above schedule i. e. for Department in instalment of Advance Tax.
- Interest under section 234B – Interest @ 1% is payable if 90 % of the tax is not paid before the end of the financial year i. e. for default in Payment of Advance Tax.
For computing interest u/s 234A/B/C and any other interest, Income Tax shall be rounded off to nearest hundred and fraction of hundred shall be ignored.