The deadline to pay the first installment of Advance Tax for the financial year 2019-20 is on 15th June 2019. In case you haven’t paid the first installment of advance tax yet, then this is the best time to pay because the due date is just a day away. For depositing Advance tax, the individual’s estimated tax liability should be more than 10,000. Following this, you need to clear advance tax before the deadline to avoid any interest on the due amount.
Advance Tax Payment
According to section 208 of the income tax act, Advance Tax payment is to be paid on the basis of total income during the year. The individuals are eligible to pay income tax return only when the total tax liability exceeds Rs. 10,000 during the financial year. In addition, an assessee has to estimate his total income for the year and pay the taxes partially or fully in advance.
Who is liable to pay Advance Tax?
- Salaried Persons whose tax calculated more than Rs.10,000 are liable to pay advance tax.
- Businessman whose tax calculated more than Rs.10,000 are liable to pay advance tax.
- Freelancers whose tax calculated more than Rs.10,000 are liable to pay advance tax.
What’s the rule for senior citizen?
Senior citizens who do not have any income from business and profession are exempt from paying Advance Tax. However, salaried employees do not have to pay advance taxes since their taxes are already deducted at the source when the salary is released.
When to file advance tax?
As per Finance Bill 2016-17, an individual has to pay advance tax in four installments. The first installment is due on 15 June each year in which you have to deposit 15% of the tax liability. Whereas by 15 September, you should have paid 45%, by 15 December 75% of the tax and by 15 March all of it. Meanwhile, if you filed your income under presumptive taxation scheme, then you need to pay the whole advance tax in a single instalment on or before 15 March.
|Advance Tax||Installment||Due Date|
|15% of Advance Tax||1st Installment||15th June|
|30% of Advance Tax||2nd Installment||15th September|
|30% of Advance Tax||3rd Installment||15th December|
|25% of Advance Tax||4th Installment||15th March|
|Tax on Capital gains or casual incomes arising after 15th March, if any|
What happens if you miss the June 15 deadline?
The income tax department will charge a penalty if you fail to pay the advance tax before the deadline. Paying the advance tax on time helps you plan your tax liability over the year rather than paying at one go at the end of the financial year.