Refer website to a friend


Tax Planning

Will the proposed FBT change reduce your take home pay?

Join The Discussion Now
Visit Tax Planning Forum and get expert advice on income tax calculations, slabs and rules.

Tax

print Email

I have heard about some people paying Advance Tax - what is this?

Advance Tax is paying some part of your annual taxes in advance of the annual deadline.

If you are a salaried employee, you do not need to pay Advance Tax. However, if you are a self-employed professional or a businessperson, you will have to pay Advance Tax.

Advance Tax is paid using Tax Payment Challan and can be deposited at banks empanelled with the income tax department, for example at designated branches of ICICI, HDFC, SBI etc. Please note that not all branches will accept the Challan, so please make yourself aware of which of your local branches will accept it.

Due date for Payment of Advance Tax For Individuals / Firms For Corporate Assessees
15 June Not applicable 1st Payment of up to 25%
15 September 1st Payment of up to 30% 2nd Payment of up to 50%
15 December 2nd Payment of up to 60% 3rd Payment of up to 75%
15 March 3rd Payment of 100% 4th Payment of 100%


If you liked this article, you might also want to read:



Browse All Categories :

Tax Filing Income from Salaries Tax Deduction

Comments
post new comment      Ask a question
Raghav said :
22/07/2011 		"If you are a salaried employee, you do not need to pay Advance Tax" this statement is totally incorrect,. I request the website personnel to be careful while posting such information.
Anonymous said :
31/05/2009 		This article is inaccurate and misleading. It should not say "If you are a salaried employee, you do not need to pay Advance Tax". Even if one is salaried and has income other than from salary, such as rental income, capital gains, etc., paying advance taxes is mandatory. This article should be corrected to state that in case one has income only from salary and tax has been deducted at source by the employer(s) during the financial year, advance tax is not payable. In case of income from sources other than salary, or where tax has not been deducted at source by the employer(s) advance tax is still payable by a salaried person. The table with rules related to advance tax payment is also incomplete. The 30%, 60% rules apply to income made before Sep-15 only. In case income is made between Sep-15 and Dec-15, rules are different.