{"id":6040,"date":"2020-05-19T21:10:33","date_gmt":"2020-05-19T15:40:33","guid":{"rendered":"http:\/\/capitalante.com\/?p=6040"},"modified":"2020-05-19T21:12:33","modified_gmt":"2020-05-19T15:42:33","slug":"advance-tax","status":"publish","type":"post","link":"https:\/\/capitalante.com\/advance-tax\/","title":{"rendered":"Advance Tax – Definition, Due Dates, Calculation"},"content":{"rendered":"

Have you ever received any SMS or Mail like this, \u201cPay the first installment of advance tax before 15th<\/sup> June\u2019\u2019? But you get confused about what is an advance tax, who will mandatorily pay advance tax, how to pay advance tax, and what are the consequences if you miss the advance tax payment within due dates. In this column, we will discuss the above-mentioned points.<\/span><\/p>\n

What is Advance Tax?<\/strong><\/span><\/h2>\n

Advance tax can be simply described as after calculation of taxable income as well as taxes payable. You need to pay the whole tax amount in installments within the due dates prescribed under the income tax act, 1961.<\/span><\/p>\n

Who will mandatorily pay advance tax?<\/strong><\/span><\/h2>\n

Irrespective of individual or company or firm all are liable to pay advance tax if the total tax liability exceeds Rs. 10, 000\/- in any financial year. If you are a salaried employee and your total tax liability exceeds Rs. 10, 000\/- for any financial year, then your employer will deduct the tax automatically. But in the case of income from capital gains or business income with a total turnover above Rs. 2 crores then you need to pay advance tax irrespective of the taxes payable less than Rs. 10, 000\/-.<\/span><\/p>\n

What are the due dates?<\/strong><\/span><\/h2>\n

In accordance with the Income-tax act, 1961, both corporate assessee and companies need to pay advance tax in 4 installments.<\/span><\/p>\n\n\n\n\n\n\n\n
Due Date<\/span><\/strong><\/span><\/td>\nAdvance tax<\/span><\/strong><\/span><\/td>\n<\/tr>\n
On or before 15th<\/sup> June<\/span><\/td>\n15% of Income Tax<\/span><\/td>\n<\/tr>\n
On or before 15th<\/sup> September<\/span><\/td>\n45% of Income Tax<\/span><\/td>\n<\/tr>\n
On or before 15th<\/sup> December<\/span><\/td>\n75% of Income Tax<\/span><\/td>\n<\/tr>\n
On or before 15th<\/sup> March<\/span><\/td>\n100% of Income Tax<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

How to calculate the advance tax payment?<\/strong><\/span><\/h2>\n

In order to calculate let\u2019s calculate the total taxes any individual need to pay. But before the calculation, let\u2019s discuss some of the income tax deductions under Chapter VI-A.<\/span><\/p>\n

\"Calculation<\/a><\/span><\/p>\n