What is Advance Tax?

How to Calculate & Pay Advance Tax?

Advance tax means a tax on income should be paid in advance instead of a lump-sum payment at the end of the year. It is also known as pay as you earn a tax. These payments should be made in instalments according to the deadlines given by the income tax department.

Who should pay Advance Tax?

Advance tax

Sales, freelancers and businesses.- If your tax liability is R 10,000 or more, you must pay a tax beforehand in the financial year. With an advanced tax applied to advanced taxes, wages, freelancers and companies. Older people, over 60 years of age or older, do not have to pay taxes beforehand.

Suspected businesses – When taxpayers choose a predefined scheme, business income is ₹ 2% less than 2% of turnover, except for FY2017-18 tax exemption.

The alleged income of companies for FY 2016-17 – The taxpayers who opt for the budget project must pay the full amount of their initial taxes on or before March 15. If they have to pay their fiscal payments on March 31, it’s okay. Start FY 2016-17. Companies with a turnover of Rs 2 crores or less can choose this scheme.

Presumptive income for Professionals for FY 2016-17this scheme includes doctors, lawyers, architects, etc. They are aimed at professionals like it. If they receive 50 lakhs or less (article 44AD). The taxpayers must pay a three-monthly fee.

Due Dates for payment of Advance Tax

FY 2017-18 & FY 2016-17 For both individual and corporate taxpayers

 

Due Date Advance Tax Payable
On or before 15tpayable on 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

For taxpayers who have opted for the Tax Provision Scheme – Business Income

Due Date Advance Tax Payable
by 31st March 100% of advance tax

Taxpayers choose to set a tax on the taxable property, taxation or leasing business

Due Date Advance Tax Payable
On or before 15tpayable on 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

  For FY 2014-15 and FY 2015-16  

Due Date For corporate taxpayers For individual taxpayers
On or before 15th June 15% of advance tax
On or before 15th September 45% of advance tax 30% of advance tax
On or before 15th December 75% of advance tax 60% of advance tax
On or before 15th March 100% of advance tax 100% of advance tax
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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.