The deadline to pay first installment of advance income tax is just 2 days away i.e. June 15. So, make sure you are done with the payment towards the same.
But before proceeding to make the payment, know all important aspects concerning advance tax.
When do you need to pay advance tax?
Income tax assessees, including salaried individuals whose tax liability for a given financial year, after reducing the tax deduction or collection at source equals to Rs. 10,000 or more.
For other assessees in relation to eligible business referred as in sec 44 AD, the advance tax liability is to be cleared on or before 15 March of the respective FY.
Senior citizens in the age group of 60 years and above and not drawing any income from business or profession are spared from this tax liability.
How to make advance tax payment?
E-payment mode for advance tax payment has been made mandatory for all corporates and taxpayers whose accounts are required to be audited under section 44AB of the IT Act. Also, other taxpayers can choose this mode as it ensures credit of correct amount.
The income tax department has provided timeline to pay advance tax dues and is required to be paid in 4 installments for the respective FY.
Schedule of advance tax payment
15% of the payable advance tax is to be paid on or before June 15, 2018
45% of the payable advance tax is to be paid on or before September 15, 2018
75% of the payable advance tax is to be paid on or before December 15, 2018
100% of the payable advance tax is to be paid on or before March 15, 2019
Hence, if your net income is more than Rs. 5 lakh a year, do not miss on the advance tax payment, as else you will have to shell out some extra amount due to penalty levied by the dept. for delayed payment. From this FY, standard deduction of Rs. 40,000 is allowed to all taxpayers from the taxable income, so make sure that you claim the benefit to reduce your tax liability.
If you have the obligation to pay advance tax legally but do not make the payment or pay less than 90% of the assessed liability as advance tax by March 31, the department will impose a penalty of 1% per month or for the part of month on the unpaid advance tax amount.
Also, making timely payment of advance tax installments will spare you of last minute (i.e. before the end of FY19) shelling out of a big amount as tax which can be otherwise spread over the year through the mandated provision.