Advance Tax to be Paid by individual/HUF/ companies, whose incomes are not coming under presumptive taxation schemes.
Thank you for reading this post, don't forget to subscribe!Advance Tax to be paid in 4 instalments in a year at a certain percentage of the estimated total income for the Financial Year by subtracting all eligible deductions & exemptions.
Table Format
| Status of assessee | 1st Installment (15th June) | 2nd Installment(15 the September) | 3rd instalment (15 the December) | 4th instalment( 15th March) |
| Tax payer who opted for presumptive taxation scheme of sec 44AD/44ADA | Nil | Nil | Nil | 100% of advance Tax |
| Tax payer who not opted for presumptive taxation scheme of sec 44AD/44ADA | 15% of estimated advance tax | 45% of estimated advance tax | 75% of estimated advance tax | 100% of estimated advance tax |
As per Sec-208 of Income Tax Act states that, Tax payer whose estimate tax liability for the Financial year Rs.10,000/- or more, then he has to pay his tax in advance on or before the due date.
Thus, Taxable income is subjected to applicable income tax slab rate for individuals & as per the corporate tax rate for businesses.
Mode of payment of advance Tax & Challan requirement
Advance Tax should be paid on both online & offline mode.
Online transaction can be done through income tax department portal.
Offline payment of advance tax can be done by submitting challan no-280 along with cash/cheque/demand draft.
