Table of Contents
1. When should we pay advance tax?
Every taxpayer whose estimated tax liability is 10,000/- or more during the previous year is required to pay advance tax before the prescribed due dates (section 208).
2. Who is not liable to pay advance tax?
A resident individual of the age of 60 years or above and not having any income from “profits and gains from business or profession (PGBP)” at any time during the previous year is not liable to pay advance tax (section 207).
3. What is the benefit of paying advance tax?
- The concept of advance tax is pay as you earn.
- The benefit of paying the tax in advance is that it reduces the taxpayer’s burden of paying entire tax at the end of the year.
- Advance tax also provides continuous flow of income to the government throughout the year.
4. What are the due dates for payment of advance tax?
All the assessees who are liable to pay advance tax shall pay the advance tax in four instalments. The due dates of each instalments are as mentioned below,
| Due Dates | Minimum Amount Payable |
|---|---|
| On or before the 15th June | 15% of advance tax |
| On or before the 15th September | 45% of advance tax |
| On or before the 15th December | 75% of advance tax |
| On or before the 15th March | 100% of advance tax |
5. When should the assessee pay tax when he/she opts to pay tax under the presumptive taxation scheme?
Assessees who opt for presumptive taxation scheme under section 44AD/ 44ADA/ 44AE should pay the entire amount of advance tax on or before 15th March of the previous year. (i.e. in a single instalment)