Deadline for third installment of Advance Tax nears; here's how you can pay it
If you miss the first deadlines for advance tax payment, you will have to pay interest, which is computed as 1% interest on the defaulted amount for every month until the tax is paid off completely.
The Income Tax department through an advertisement on its website has reminded taxpayers about third installment of advance tax to be paid by December 15, 1017.
Advance tax means income tax that needs to be paid in advance instead of lump sum payment at year end.
There are four due dates for payment of advance tax in installments, as per IT-department.
Therefore, the I-T department has reminded taxpayers to pay their third instalment by December 15. The department said these taxpayers are liable and not liable to pay their advance tax.
Any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted/collected at source is Rs 10,000 or more.
Taxpayers such as doctors, lawyers and architects if their gross receipts are Rs 50 lakhs or less (Section 44ADA) are liable to pay advance tax.
Income generated from sources like capital gains on shares, interest earned on fixed deposits, winnings earned from a lottery and rent earned from the house property.
Assessee in respect of eligible business referred to in Section 44AD is liable to pay whole amount of such advance tax on or before March 15 of respective financial year.
While resident senior citizen (individual is aged at 60 years or more) not having income from business profession is not liable to pay advance tax.
Here's how you can pay advance tax.
There are many ways to pay advance tax. One such method is through tax payment challans at bank branches which are authorised by IT-department like ICICI Bank, Reserve bank of India, HDFC Bank, Syndicate Bank, Allahabad Bank, State Bank of India and more.
Another way would be to pay it through online facility offered by the IT-department.
- Go to the official government website.
- Select the right challan to pay your income tax (Advance tax)
- Fill in the correct details in the form. You’ll have to fill in details such as the right assessment year, address, phone number, email address, bank name, captcha code and other such important details.
- Once you are done filling in the details, you’ll be redirected to the bank’s Net Banking page. The income to be paid should be rechecked in this page.
- Next, you’ll get details of your payment including your challan number.
- It is important to report your payment after you’ve made the payment. You can do so by adding an additional entry under the paid tax page.
In case you miss the first deadlines for advance tax payment, you will have to pay interest, which is computed as 1% interest on the defaulted amount for every month until the tax is paid off completely.
Similarly, it is applicable on second and third deadline.