Deadline to file ‘advance tax’ is June 15: Details here

Deadline to file ‘advance tax’ is June 15: Details here

If you have not yet paid the first instalment of your advance tax, then you should file it no later than June 15 to avoid a penalty.

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But what is advance tax and how can you calculate it?

Get all your questions answered here.

What is advance tax and when is it payable?

Advance tax refers to the part of your yearly taxes which you pay in advance. It helps you divide your tax liability over the year instead of paying a lump-sum amount at year-end.

You are liable for payment of advance tax if your tax liability for a financial year exceeds Rs. 10,000.

It should be paid in the FY for which you have received the income.

Who needs to pay advance tax?

Who needs to pay advance tax?

In case of salaried individuals, the payment of advance tax is taken care by their employer who deducts TDS from the salary.

But, if your source of income is through business, capital gains, house property or any other source, then you fall under the ambit of this tax.

Resident senior citizens (60yrs or above), not having income from business/profession, are exempted from paying advance tax.

ow much advance tax is payable?

You can compute the amount of advance tax by estimating your total income for the year and then calculating your tax liability in accordance with the applicable tax slab for that financial year.

Due dates for instalments of advance tax for FY 2017-18

Advance tax for a financial year is payable in four instalments. The due dates for the financial year 2017-18 are as follows:

1st Instalment (15% of estimated advance tax): June 15, 2018

2nd Instalment (45% of estimated advance tax): September 15, 2018

3rd Instalment (75% of estimated advance tax): December 15, 2018

4th instalment (100% of estimated advance tax): March 15, 2019.

How to pay advance tax online?

You can pay advance tax both online and offline.

Then, under the ‘Services’ tab, select the ‘e-payment’ option and then select Challan 280.

After entering the required details, make the payment through net banking.

How to pay advance tax offline?

To make the advance tax payment offline, you can visit a bank authorized by the Income Tax department and make the advance tax payment using tax payment challans.

The list of authorized banks includes commercial banks like ICICI Bank and HDFC Bank, public banks like Allahabad Bank and State Bank of India, along with the central bank Reserve Bank of India, among others.

 

Source by newsbytesapp

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