ADVANCE TAX

 

Advance Tax is pre paid tax by the assessee on the income earned during the year. In simple words, you  can say that assessee have to paid taxes in advance on the estimate income during the year in three installment for individual assessee and four installments for companies and corporate assessees.

Advance Tax is payable only if net tax payable on Income of the full Financial year is Rs 10000 or more.if Tax payable is less than Rs 10000 then no Advance tax is payable.Surcharge, education and higher education cess should also be considered while calculating the advance tax liability. The senior citizens have been exempted from payment of Advance Tax from Assessment Year 2013-14.

Mode of advance Tax : As per circular number 5/2008 ,all corporate assesses and all other assesses (who are subject to compulsory audit under section 44AB) is required to deposit tax through on-line mode only.Further on-line payment can be done through friends /relative account also.

 

Advance Tax Installments & Due Dates for Firms, Co-operatives and Local Authorities

Due Date

Amount of Tax

15th September

At least 30% of Tax on total income for the year.

15th December

At least 60% of Tax on total income for the year less advance tax already paid.

15th March

100% of Tax on total income for the year less advance tax already paid.

Advance Tax Installments & Due Dates for Companies

Due Date

Advance Tax Installment Amount

15th June

At least 15% of Tax on total income for the year.

15th September

At least 45% of Tax on total income for the year less advance tax already paid.

15th December

At least 75% of Tax on total income for the year less advance tax already paid.

15th March

100% of Tax on total income for the year less advance tax already paid.