Advance Tax

Due dates for the Payment of Advance Tax Liability are:-

Due Date of Payment of Advance Tax Amount Payable
On or before 15th June Up to 15% of advance tax payable
On or before 15th September Up to 45% of advance tax payable
On or before 15th December Up to 75% of advance tax payable
On or before 15th March Up to 100% of advance tax payable

Process :

Steps for making the Online Payment are:-

  • Open the Link i.e. https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
  • Select the Challan No. /ITNS 280 i.e. Payment of Incorporation Tax and Corporation Tax.
  • For Companies, Select the code 0020 and for others the code is 0021.
  • Please be careful while selecting the Assessment Year. For ex- If you want to pay the advance tax for FY 2017-18 then you need to select the Assessment Year 2018-19.
  • In Type of Payment, you have to select the code 100.

Consequences :

1. Interest @1% is payable u/s 234B if 90% of the tax is not paid before the end of the financial year.

2. Interest @1% per month is payable u/s 234C if there is a deferment in Installments of Advance Tax.

FAQ :

1. What is Advance Tax and who is liable to pay?

Advance tax means paying a part of your taxes before the end of the financial year. Advance tax is the Income tax payable if the tax liability is more than Rs.10,000 in a financial year.

2. Who are exempted from Payment of Advance Tax?
  • Resident Senior citizens (age 60 years or more) not having any income from business and profession.
  • An assessee who has opted for the scheme under section 44AD on presumptive basis.
  • If the estimated tax liability for whole financial year is less than Rs.10,000/-.
3. Who are required to make the electronic payment mandatory?

All the assesses who are required to get their accounts audited u/s 44B and all the companies (irrespective of the turnover) are mandatorily required to make the electronic payment of taxes through Internet banking or through credit or debit cards.

Other assesses can make either Online tax payment or through normal banking (by way of Cheque/ Cash).