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Advance Tax Payment: Due Dates And Interest on Late Payment

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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

  1. 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.
  2. 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.

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