{"id":7414,"date":"2018-03-01T13:12:49","date_gmt":"2018-03-01T07:42:49","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=7414"},"modified":"2023-06-22T15:30:02","modified_gmt":"2023-06-22T10:00:02","slug":"advance-tax","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/advance-tax\/","title":{"rendered":"FAQs on Advance Tax  \u00a0"},"content":{"rendered":"<h2 class=\"wp-block-heading\"><strong>1. What is an Advance tax?<\/strong><\/h2>\n\n\n\n<p>Ans. Advance tax is the tax which is paid in advance before completion of the financial year. The Indian Govt. has made a mechanism through which the assessed need not pay the amount of total tax in one go if the amount of tax exceeds the prescribed limit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. Who should pay the advance tax?<\/strong><\/h2>\n\n\n\n<p>Ans. Any person having a salary, business income, and his expected total income tax liability after TDS is Rs.10,000\/- or more. However, the provision of the tax is not applicable to the <a href=\"https:\/\/en.wikipedia.org\/?title=Senior_citizens&amp;redirect=no\">senior citizen<\/a> (60 years or older) and do not have any business income.<\/p>\n\n\n\n<p>Further, any person who has opted the presumptive taxation scheme u\/s 44AD is liable to pay the whole amount of advance tax before 15<sup>th<\/sup> march of the previous year, However, if the taxpayer did not pay the tax amount before 15<sup>th<\/sup> march of the previous year then penalty u\/s <a href=\"https:\/\/enterslice.com\/learning\/section-234c-interest-for-deferment-of-advance-tax\/\">234C<\/a> shall also be levied.<\/p>\n\n\n\n<p>Note: &ndash; Any amount paid as an <a href=\"https:\/\/enterslice.com\/income-tax-return-filing\">Income tax<\/a> before 31<sup>st<\/sup> March shall be considered as an Tax.<\/p>\n\n\n\n<ul>\n<li>Profit and gain of business or profession&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;XXX<\/li>\n\n\n\n<li>Income from other sources&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;XXX<\/li>\n\n\n\n<li>Gross Total Income&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;XXX<\/li>\n\n\n\n<li>Less:- Deduction u\/s 80C(NSC &amp; Tuition Fee)&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; XXX<\/li>\n\n\n\n<li>Total Income (i.e. Taxable Income)(A)&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;XXX<\/li>\n\n\n\n<li>Tax on (A)&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; XXX<\/li>\n\n\n\n<li>Less:- Rebate u\/s 87A ( lower of 100% of tax&nbsp; OrRs.2500)&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;XXX<\/li>\n\n\n\n<li>Tax Liability after rebate u\/s 87A&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;XXX<\/li>\n\n\n\n<li>Add:- Education Cess @ 2%&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; XXX<br>Add:- SHEC@1%&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; XXX<\/li>\n\n\n\n<li>Tax Liability before TDS&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;XXX<\/li>\n\n\n\n<li>Less:- TDS Deducted&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;XXX<\/li>\n\n\n\n<li>Tax Liability after TDS&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; XXX<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Due Date of the advance Tax under income Tax act 1961<\/strong><\/h2>\n\n\n\n<p>For individual and corporate taxpayers<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Due Date <\/strong><\/td><td><strong>Advance tax to be paid<\/strong><\/td><\/tr><tr><td>On or before 15<sup>th<\/sup> June<\/td><td>15% of the Tax liability after TDS<\/td><\/tr><tr><td>On or before 15<sup>th<\/sup> Sept<\/td><td>45% of the Tax Liability after TDS<\/td><\/tr><tr><td>On or before 15<sup>th<\/sup>Dec<\/td><td>75% of the Tax Liability after TDS<\/td><\/tr><tr><td>On or before 15<sup>th <\/sup>March<\/td><td>100% of the Tax Liability after TDS<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>&nbsp;<\/strong><strong>For the person who has opted presumptive taxation scheme-44AD<\/strong><\/h2>\n\n\n\n<p>Any person who has opted presumptive taxation scheme shall liable to pay their tax liability by the end of 31<sup>st<\/sup> March of each financial year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>For the person who has opted presumptive taxation scheme-44AE<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Due Date <\/strong><\/td><td><strong>Advance tax to be paid<\/strong><\/td><\/tr><tr><td>On or before 15<sup>th<\/sup> June<\/td><td>15% of the Tax liability after TDS<\/td><\/tr><tr><td>On or before 15<sup>th<\/sup> Sept<\/td><td>45% of the Tax Liability after TDS<\/td><\/tr><tr><td>On or before 15<sup>th<\/sup> Dec<\/td><td>75% of the Tax Liability after TDS<\/td><\/tr><tr><td>On or before 15<sup>th<\/sup> March<\/td><td>100% of the Tax Liability after TDS<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Interest on late payment of Advance Tax <\/strong><\/h2>\n\n\n\n<p>If the amount of advance tax is not paid\/partially not paid on the due date of tax as above mentioned then interest shall also be levied on such remaining amount u\/s 234C and 234B of the <a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/acts\/income-tax-act.aspx\">income tax act 1961<\/a>.<\/p>\n\n\n\n<p><strong>Interest u\/s 234C:-&nbsp;<\/strong>Interest @1% p.m. shall be levied if the tax is not paid as per the above-mentioned date i.e. Deferment of installment of Advance Tax.<\/p>\n\n\n\n<h3><\/h3><p>Also, Read: <a href=\"https:\/\/enterslice.com\/learning\/property-registration-without-property-tax\/\">No <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Property&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Property refers to the legal designation of ownership over valuable items or assets held by an individual or a business. This ownership grants the holder certain legal rights to use, consume,(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/property\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Property<\/a> Registration without Property Tax<\/a><\/p>\n\n\n\n<p><strong>Interest u\/s 234B:-&nbsp;<\/strong>Interest @1% shall be paid if the 90% of the tax is not paid before the end of the financial year i.e Default in payment of Tax.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>1. What is an Advance tax? Ans. Advance tax is the tax which is paid in advance before completion of the financial year. The Indian Govt. has made a mechanism through which the assessed need not pay the amount of total tax in one go if the amount of tax exceeds the prescribed limit. 2. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":7442,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1473,2435],"tags":[1662],"acf":{"service_id":"48"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Advance Tax: Who Should Pay the Advance Tax? | Enterslice<\/title>\n<meta name=\"description\" content=\"The tax which paid in advance before completion of the financial year known as advance tax. 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