What is Advance Tax?
As the term itself is explaining, advance tax is paying income tax in advance. Generally as per rule, if you are liable to pay Rs 10,000 or more taxes in a financial year, then you should pay your income tax in advance. This is also called a spay as your earn, which means you pay the tax on the same financial year, for which you are earning money through business or salary or other sources income. For instance, if one is earning through capital gains, interest on investments, lottery, house property or business, the concept becomes relevant.
Who Should File Advance Tax?
Generally if you are a salaried person, then you might have noticed that every month in your pay slip company has deducted some taxes as per the investment declaration on their income tax calculator. That is called TDS or tax deducted at source. Now company will pay the advance tax on behalf of you in such scenario. Now beyond that income, if you have some other income where you are liable to pay taxes as per the advance tax rules, then you have to file separate tax, beyond that TDS income.
In case Professionals (self-employed), businessmen, companies and corporate the tax need to be paid in advance only. There might be some special clause for them, compared to salaried person which an CA can guide you only.
Due date of advance tax for individual
FY 2016-17 – For both individual and corporate taxpayers
|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|
FY 2014-15 and FY 2015-16
|Due Date||For corporate taxpayers||For individual taxpayers|
|On or before 15th June||15% of advance tax||–|
|On or before 15th September||45% of advance tax||30% of advance tax|
|On or before 15th December||75% of advance tax||60% of advance tax|
|On or before 15th March||100% of advance tax||100% of advance tax|
How To Pay Advance tax Online?
You can easily pay your advance tax or self-assessment tax by visiting income tax India official website. You can also visit any of Reserve Bank of India, State Bank of India, ICICI Bank, HDFC Bank, Indian Overseas Bank, Indian Bank, and other authorized banks and fill up the tax payment challan to complete the process.
Advance Tax Calculator Link – FY 2016-17
Important Dates to Remember – Tax Calender FY 2016-17
You can follow the useful and authentic links mentioned above from the official website of Income Tax India. Any changes of rules & dates will be updated immediately there. In case you need financial advice or tax planning tips, its always recommend to contact a professional like CA or CFP professionals. Remember, pay your taxes on time to avoid unwanted penalties & scrutiny from tax department. From this year onward there is a penalty applied in case you miss the tax deadlines. I will be sharing about the same on a separate article in details.