Have You Paid Advance Tax Yet? All Advance Tax Related Details

Date : 14/06/2023
Read: 3 mins

Find all the important information on advance tax in one place, as you get ready to pay the first instalment of advance tax

There are defined advance tax payment schedules in India for various taxpayers
Advance tax can be easily deposited online
Delay in payment attracts additional interest cost

You have to prepare for the Income Tax Returns for the financial year 2022-23, with the deadline approaching. But, don’t let it distract you from doing the needful for the current financial year.

We are already two months into the financial year, and so the advance tax due date is upon us.

Also Read: ITR Filing Done Right with These Income Tax Preparations

Basic Information About Advance Tax

Advance tax is the income tax paid in instalments, rather than a onetime payment. For most taxpayers, the advance tax must be paid four times a year.

Advance tax must be paid on or before these dates –
- 15% of total advance tax - 15 June
- 30% - 15 September
- 30% - 5 December
- Remaining 25% - 15 March
This is applicable for individuals and corporate taxpayers
Advance tax applicable to all businesses, freelancers and salaried individuals if the total tax liability for a financial year is more than Rs 10,000
Taxpayers opting for the presumptive taxation scheme under section 44AD or under 44ADA must pay their advance tax in one instalment on or before 15 March
Individuals above the age of 60 who don’t have a business income are not required to pay advance tax

Taxpayers who are supposed to deposit advance tax must estimate their total tax liability for the financial year, and pay 15% of it on or before 15 June 2023.

Also Read: Get Ready to Save Big: Exemption Limit Raised on Leave Encashment

Where Can I Pay Advance Tax?

You can pay your advance tax online by visiting the Income Tax Department’s e-filing portal and clicking on the “e-Pay Tax” link.

You must enter your PAN and mobile number, and click on “Continue”
On the next page, you have to enter the 6-digit OTP sent to your mobile number, and click on “Continue”
On the next page, you have to click on the “Income Tax” box and click on “Proceed”
Next, you have to select the assessment year, which for now will be 2024-25
You will also have to select the “Type of Payment” as an advance tax, and then click on “Continue”
On the next screen, you have to enter the tax amount you intend to pay
Thereafter, select the payment method and your bank and click on “Continue”
The challan details will appear next. You can review the details, and either edit them or click on “Pay Now”
Once the payment is completed, an acknowledgment will appear with the BSR code and challan serial number mentioned. The information in this receipt will be required while filing your income tax return

Also Read: TDS Getting Deducted Despite Zero Tax Liability? Here’s How You Can Avoid It

If the tax paid before the advance tax deadline is less than the required percentage, an interest of 1% per month is charged on the unpaid amount. You can save this cost by being prompt in your advance tax payments.

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