Advance Tax Payment Deadline: It is the duty of every responsible citizen to deposit Income Tax on his earnings. This not only leads to the development of the country, but also ensures basic infrastructure like better roads to hospitals.
Generally, income tax has to be paid at the end of the year on the earnings made during a financial year, but in some cases taxpayers have to deposit tax even before, which is called Advance Income Tax.
Deadline is near
You must have heard about this advance tax many times. The Income Tax Department also issues advance tax figures from time to time. It is called advance tax because it has to be paid before the completion of the financial year. This scheme has been introduced to reduce the financial burden of the taxpayers. Under this, instead of paying huge tax at one go, you can pay tax in pieces. For this time only a few days are left for the deadline for filing advance tax to end. For this reason, the Income Tax Department has once again alerted all those taxpayers who need to pay advance income tax.
Department did this tweet
The Income Tax Department has said in a recent tweet, “Attention taxpayers. The last date for filing the last installment of advance tax is near. Remember that you have to pay the last and fourth installment of advance tax by March 15, 2023.” Let us tell you that if the taxpayers falling in the category of paying advance tax do not pay it before the deadline, then they may have to pay a fine.
What is advance tax
First of all, let us tell you that what is this advance tax… Advance tax is the income tax, which the taxpayer has to pay every quarter instead of all at once. According to the Income Tax Act, the taxpayer has to calculate the income earned in the entire financial year. Based on this, tax has to be paid at particular intervals. That is, the advance tax is paid during the same financial year in which you earn.
Who needs to pay advance tax
Every taxpayer, whose tax liability is Rs 10,000 or more in a financial year, has to pay advance tax, whether he is employed, runs a business or is associated with any profession. Salaried people do not have to pay advance tax, because the employer pays the salary after deducting TDS. Such taxpayers are required to pay advance tax only when they have income other than salary, such as income from rent, interest or dividend. Usually businessmen or professionals pay advance tax. People above 60 years are exempted from paying advance tax. The condition is that they should not have income from any business or profession.
Attention Taxpayers!
The last date for payment of the last instalment of Advance Tax is almost here!Do remember to pay your fourth & final instalment of Advance Tax by 15th March, 2023. pic.twitter.com/nDvehTrpSV
— Income Tax India (@IncomeTaxIndia) March 10, 2023
This is how advance tax is paid
Advance tax is divided into four parts. The first installment has to be deposited by June 15, the second by September 15, the third by December 15 and the last by March 15. You have to deposit 15% of the total tax as advance tax by June 15. After this, 45% tax has to be paid by 15th September, 75% by 15th December and 100% by 15th March.
Penalties apply after the deadline
If you fail to pay advance tax on time, you will have to pay interest under section 234B and section 234C. Suppose you miss the deadline of September 15, then you will have to pay interest for 3 months, the rate of which is one percent per month. If the taxpayer has paid more advance tax, then he can claim refund by filing income tax return.
Advance tax filing process
Filling advance tax is very easy… For this you have to go to the e-filing website of the Income Tax Department (https://www.incometax.gov.in/) and click on the option of e-Pay Tax. By entering PAN number and mobile number, you have to select the option of advance tax. You can pay through net banking or debit card. Alternatively, you can generate Challan No. 208 and pay advance tax by depositing it in an authorized bank branch.
