financial services

Know about Advance Tax in India

Any taxpayer who has an estimated tax liability of more than Rs. 10,000 in a particular Financial Year is supposed to pay income tax in advance or is required to pay advance tax. Generally, those taxpayers who have an estimated tax liability of less than Rs.10,000 are required to pay income tax in the relevant Assessment Year.

 

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As per the advance tax method, tax liability is distributed in instalments within the same financial year. Therefore, an estimated tax must be paid in instalments throughout the relevant financial year. If a taxpayer is paying advance tax and the amount of tax paid by the taxpayer is more than the estimated tax liability, then, in that case, the taxpayer can claim tax refund for the extra tax that he/she has paid to the Government.

Download Click Here and use our IOS App to file your Income Tax Return

 

In India advance tax is calculated in the same manner the way normal tax is calculated. The same tax slabs that are applicable too, but the method of filing advance tax is a bit different from the normal tax.

Filing Income Tax Return

This is how you can file Advance Tax

  • ·        Compute your estimated tax liability by using the tax slabs, deductions etc.
  • ·        Visit the Government’s tax information network, select Challan No. 280.
  • ·        On the e-payment page, fill the correct applicable tax type, PAN details, and choose the relevant assessment year.
  • ·        Fill in all the required details and choose ‘(100) advance tax’ option for payment  Make the advance tax payment.
  • ·        A challan with a specific number will be generated. You are required to quote this during future tax filings for the relevant financial year.

All India ITR Login | Start Filing Income Tax Return

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