How to make Advance Tax Payment : Quick Guide

In this Guide we will let you know about how to make advance Tax payment. According to Indian tax system filing of income tax is very important and mandatory in India and in case of failure of filing of income tax you may have to face legal consequences of it. Normally people pay their taxes in end of financial year but there is option available of advance tax. Advance tax means you can pay your income tax in advance in instalments within specified due dates and a taxpayer is liable to pay advance tax if his total tax liability is more than Rs 10,000. This article talks about the advance tax and who should pay advance tax and how a taxpayer can pay his advance tax.

advance tax payment

What is Advance tax?

All taxpayers is liable to pay advance tax if their total tax liability is Rs 10,000 or more in a financial year and they are paying their tax in advance, they are required to pay advance tax in 4 instalments within the specified due dates. Basically advance tax means a taxpayer is paying his tax in advance and paying his tax in 4 installments within the specified due dates if such tax payable is rupees 10,000 or more. Senior citizens who are 60 years old or more than 60 years old are exempted if they do not have income from business/profession.

Who should pay advance tax?

  • A person is liable to pay advance tax when his total tax liability is Rs 10,000 or more in a financial year. Salaried, freelancers and businesses are liable to pay advance tax if their total tax liability is Rs 10,000 or more in a financial year. If a senior citizen, who are 60 years or older and he do not run a business will be exempted from paying advance tax.
  • An NRI is also liable to pay advance income tax if his total tax liability is Rs 10,000 or more.
  • You will exempted from paying advance tax if you opt for presumptive scheme where business income is assumed at 8% of turnover of less than Rs 2 crore.

How to make advance tax payment?

  • You can file your advance tax payment through offline or online mode. For offline mode you have to fill the challan manually and have to submit to the income tax department of India.
  • You can also file your advance tax through online mode and it is very easy to file your advance tax through online mode. For online mode you have to visit the official website of income tax department of India.
  • Then you have to choose the option of filing income tax. You have to select the challan 280 for filing of Advance tax. After selecting the challan 280 you have to fill the challan.
  • You have to fill your personal information like your PAN details, your complete address, your personal income and other details related to your income. After filling of challan you can submit your challan then you have to pay your advance tax payment through online mode. You have to choose a payment method then you can make advance tax payment.
  • After successful submission of payment of advance tax you will get a tax receipt.

Conclusion

Filing of income tax return is mandatory and if you are choosing the option of advance tax payment then you will be benefited because you don’t have to pay much income tax and you can pay your tax in installment so there is no burden on you. As you can see in above article that a taxpayer is liable to pay his advance tax when his total tax liability is more than Rs 10,000 and you can pay your advance tax in specified due dates. Next due date for advance tax is 15th December and 15th march. You can also pay your advance tax till 30th December. So if you are liable to pay advance tax then you should pay it because it will decrease your burden and you can easily pay your advance tax through online mode.