Advance Tax

Advance Tax - Process, Procedure, Document Required, Fees, Eligibility, Duration

Advance tax means paying your income taxes before the end of the fiscal. If your tax liability exceeds Rs 10,000 in a financial year then you must pay this tax. The advance tax must be paid in the same year in which you have received your income. This tax can be paid through tax payment receipt at bank branches which are certified by the Income-tax department. Advance tax can be paid in installments with 15 percent on or before 15th June, 45 percent on or before 15th September, 75 percent on or before 15th December, and 100 percent of needs to be paid on or before 15th March.

Know benefits of advance tax

Every Indian citizen is liable to pay tax if his or her income falls under the Income Tax bracket. Mention below is some benefits of paying advance tax.

• Advance tax eases the burden of paying tax at the last moment.
• It helps in lessening the stress that a taxpayer may experience while making tax payments at the end of the financial year.
• The advance tax also saves individuals from failing to make their tax payments.
• It helps in increasing the funds of the government as the government gets interests in the tax collected.

Advance Tax Important Due Dates