New Delhi: Today, March 15, 2024, marks the final call for taxpayers across India to settle their fourth and last installment of advance tax for the financial year 2023-24. If you miss this important deadline, it could lead to hefty penalties and interest charges as per the norms. Read on further to find out the crucial details.
What Is Advance Tax?
Many of us who are not acquainted with this terminology, may be excited to know what it is. So, advance tax is a system that allows taxpayers to spread out their income tax payments throughout the year, rather than paying a lump sum at the end of the financial year. (Also Read: Big Relief To Paytm, Gets NPCI Approval As A Third-Party UPI App)
This approach ensures a steady flow of tax revenue for the government. (Also Read: Free Aadhaar Update Deadline Extended: Check List Of Required Documents To Do The Same)
Who Needs To Pay Advance Tax?
This may be the second question that hits your mind. This varies in different situations.
Salaried Individuals, Freelancers, And Businesses
If you are one of them, and your total tax liability is expected to be more than Rs 10,000 for the financial year, you are required to pay advance tax.
Senior Citizens
Individuals aged 60 and above who do not earn income from businesses are exempt. However, senior citizens with business income must pay advance tax.
Presumptive Income Taxpayers
Businesses and professionals under the presumptive taxation scheme (sections 44AD and 44ADA) have the option to pay their entire advance tax in one go by March 15th or by March 31st.
Number Of Installments Of Advance Income Tax
Eligible taxpayers must make advance income tax payments in four installments throughout the financial year.
Installment Timeline
The taxpayers need to pay this tax usually in June, September, December, and March.
How To Pay Advance Income Tax?
Going forward, this is the third question that may make rounds in your minds is how to pay advance income tax.
These payments can be conveniently made online via either the official website of the Income Tax Department (incometaxindia.gov.in) or the National Securities Depository.