Who pays advance tax?

All salaried employees whose income, other than salary, comes from rent, capital gains or interest income.

People involved in business and self-employment also have to pay advance tax.

Senior citizens above 60 years of age, whose income is not from business or profession, are exempted from advance tax.

Salaried employees whose total tax liability is deducted through TDS (Tax Deducted at Source) are not required to pay advance tax.

When is advance tax to be paid?

June 15 – 15% of total tax liability

September 15 – 45% of total tax liability (including first instalment)

December 15 – 75% of total tax liability (including first and second instalment)

March 15 – 100% of total tax liability

How to make payment?

E-payment is mandatory for corporate taxpayers and those taxpayers whose accounts are required to be audited under section 44AB.

Other taxpayers can also make payments online, which will save time and simplify the process.

Penalty for not paying advance tax

If a taxpayer fails to pay the advance tax on time, he or she will have to pay interest under sections 234B and 234C of the Income Tax Act.

Under 234C, if someone does not pay the tax on time, 1% monthly interest will be charged on the outstanding amount.

Under 234B, if 90% of the total tax is not deposited by March 15, interest will be charged on the outstanding amount at the rate of 1% per month till the entire tax is paid.

What to do?

If you have not yet paid advance tax, make your payment before the March 15 deadline to avoid interest and penalty.

The post Tax deadline March 15, 2025: These salaried individuals don’t need to pay the advance tax unless circumstances changed first appeared on Rightsofemployees.com.

The last date for paying advance tax is March 15, 2025. If you do not pay the advance tax within this stipulated time limit, a penalty will be imposed under sections 234 B and 243 C.

Advance tax has to be paid 4 times a year

Advance tax is paid in the same financial year in which the income is earned. It has to be paid four times in a financial year. If it has to be paid in four installments. Taxpayers have to pay 15% of the total tax liability by June 15. While 45% has to be paid by September 14. This includes the installment paid in June. By December 15, the liability is 75% which includes the installments of June and September. According to the Income Tax Act, 100% of the entire tax has to be paid by March 15.

Who has to pay advance tax?

Any taxpayer other than a salaried class individual whose tax liability for the financial year is Rs 10,000 or more in any accounting year after deduction of TDS. Additionally, individuals who have income above their salary, such as rent, capital gains, FDs or lottery winnings, are required to pay advance tax.

What will happen if you do not pay advance tax?

The Income Tax Department charges interest on the advance tax installment. Interest is charged under Section 234B and Section 234C of the Income Tax Act. Therefore, if someone does not pay advance tax or delays the advance tax payment, he has to pay more tax in the form of interest. It is important to calculate your advance tax correctly and pay it on time.

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The post Income Tax Deadline: Last four days left for last instalment of advance tax first appeared on Rightsofemployees.com.

Let us know what are the deadlines in this month, so that you do not miss them.

1- Advance tax

Advance tax is paid four times a year. Those who fall under the purview of advance tax, have to file their advance tax by 15 December, otherwise they will have to pay penalty and interest.

2- Belated Income Tax

If you have not filed ITR for the previous financial year, then you have time till December 31 to file belated ITR.

3- Free Aadhaar update

If you want to make any free update in your Aadhaar card by visiting myAadhaar portal, then you have time till 14 December for this. After this, you will have to go to the Aadhaar center to change the information in your Aadhaar and will also have to pay some fees.

4- Special FD Deadline

If you want to invest money in Utsav FD for 300 days, 375 days, 444 days or 700 days, then you have to do this before 31 December. Punjab and Sindh Bank is offering many special FDs for different periods. The deadline to invest in these is 31 December.

5- Axis Bank Credit Card Changes

Some changes have been made in the terms and conditions of Axis Bank credit cards. These new changes will come into effect from December 20.

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Public Holiday: Govt Holiday announced on December 6 in this state, read full news

Train Cancelled: Railways has canceled many trains for the next few days, check the list before going on a journey

The post 5 Financial Deadline in Dec 2024: From income tax to free Aadhaar update, these 5 deadlines are in December, see the full list first appeared on Rightsofemployees.com.

This challan has special importance in the payment of advance tax and without it it is not possible to do the whole process. So let us understand what is advance tax and how tax filing is done with its help.

What is Challan 280?

Challan 280 is a form that can be used by a taxpayer to make payment of self-assessment tax, regular assessment tax, advance tax and surtax. This form is also called ‘ ITNS 280 ‘. In case the taxpayer chooses to make the payment online, this form is available on the NSDL website to complete the transaction. Whereas, if the offline option is selected, then the form has to be taken to the designated bank branch and then the payment has to be made.

Process of payment through challan 280

If the taxpayer is opting for online payment, then the steps given below have to be followed.

• Step 1: Visit the official website of NSDL https://www.tin-nsdl.com/.
• Step 2: On the main window that opens, click on the ‘Services’ tab.
• Step 3: Select the option ‘e-Payment: Pay Tax Online’ from the drop-down menu, where you will be taken to the ‘e-Payment of Taxes’ page. This can also be accessed directly from the ‘Online Tax Payment’ box.
• Step 4: After that click on the Income Tax and Corporation Tax (Challan 280) option, a form will appear as soon as it opens. Keep in mind that you have to fill this form within 30 minutes.
• Step 5: Fill the form with details like tax, permanent account number (PAN), assessment year, and so on.
• Step 6: After filling all the details, choose the mode of payment. Payment can be made either through ‘Net Banking’ or ‘Debit Card’.
• Step 7: After this the taxpayer has to fill the details like his address, district, state, pin code, e-mail id and mobile phone number.
• Step 8: After entering the ‘Captcha Code’, click on ‘Proceed’ option and after that the taxpayer will reach the page of ‘e-payment’.

Offline process

For offline tax payment process, challan 280 has to be filled by visiting the bank branch. Where this form will be given in physical form and similarly after filling the form it will have to be paid at the cash counter of the bank.

You can check like this

After payment of tax, a counterfolio of this challan is issued, in which details like challan identification number, date of payment of tax, amount of tax paid are given. This Invoice Identification Number is needed while filing Income Tax Return (ITR), for re-generating counterfoils or for similar references in future.

The post ITR Filing Challan 280 Form: Challan 280 form is of great use in payment of advance tax, know its specialty first appeared on Rightsofemployees.com.