What is advance tax and who should pay?
As per section 208 of the Income Tax Act 1961, every person whose estimated tax liability for the year is more than or equal to `10,000 is liable to pay advance tax. Those who are excluded from paying advance tax are senior citizens who are above the age of 60, not having any income from business or profession.
Why do companies pay advance tax?
The purpose of incorporating Advance Tax provisions in the Act is to ensure that revenue reaches the Government without delay. According to Section 208 of Income Tax Act 1961, every person whose estimated tax liability for the financial year exceeds Rs. 10,000 has to pay tax in advance.
How do companies pay advance tax?
How to Pay Advance Tax Online?
- Visit the e-payment facility on the website of Income Tax Department.
- Choose the right form for the payment of Advance Tax. …
- Select the correct code for Advance Tax. …
- Fill out your PAN, name, address, email address, number etc.
What is corporate advance tax?
What is Advance Tax? Advance tax means income tax should be paid in advance instead of lump sum payment at year end. It is also known as pay as you earn tax. These payments have to be made in instalments as per due dates provided by the income tax department.
Is payment of advance tax compulsory?
Advance tax payment is a mandatory requirement that facilitates the government to receive the tax revenue on a quarterly basis rather than waiting until the end of the financial year.
What happens if you dont pay advance tax?
If you have to pay Rs 10,000 or more in taxes in a financial year, advance tax may be applicable to you. Advance Tax means paying your tax dues on the due dates provided by the income tax department. If you don’t pay advance tax on time or default completely, you may be liable to pay interest under section 234B.
Who are exempted from paying advance tax?
A resident individual who is of the age of 60 years or above at any time during the year and is not having any income chargeable to tax under the head “Profits and gains of business or profession” is not liable to pay advance tax.
What is the difference between advance tax and self assessment tax?
Advance tax is paid in the financial year which is preceding the assessment year. … Self Assessment Tax is paid in a particular assessment year before you are filing your Income Tax returns.
Can advance tax be paid after 15 March?
The deadline for filing advance tax is approaching. Any person whose estimated tax liability for the year is ₹10,000 or more is required to pay advance tax. The advance tax has to be paid in four instalments in the financial year itself. The last date for paying the fourth instalment of advance tax is 15 March.
Should senior citizens pay advance tax?
As per section 208 every person whose estimated tax liability for the year exceeds Rs. … However, as per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax.
Is TDS considered as advance tax?
If you are a salaried employee, you need not pay advance tax as your employer deducts it at source, known as TDS (tax deducted at source). … While employers apply TDS on salaries, advance tax is paid on income that is not subject to TDS.
What is the last date of advance tax payment?
Payment of Advance Tax
First Instalment- by 15th June every year you have to pay 15% of tax liability. Second Instalment- by 15th September you have to pay 45% of tax liability. Third Instalment- by 15th December you have to pay 75% of tax liability.
Is advance tax date extended for FY 2020 21?
The last date of furnishing of Report of Audit for the previous year 2020-21 is till January 15, 2022. The due date of furnishing report from an accountant by persons entering into international transaction or specified domestic transaction for the previous Year 2020-21 has been extended till January 31, 2022.