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?
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 2016-17–this 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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