Kolkata, December 14: Advance Tax is a form of income tax that you need to pay if your tax liability is more than Rs 10,000 for a certain financial year. Unlike income tax, which is assessed in the next financial year, advance tax has to be paid in the same year it is received. So advance tax is also called the ‘pay as you earn’ scheme. The idea of advance tax is to provide the government an income throughout the year.
If you are a salaried individual, you do not need to pay advance tax. This is because employees generally deduct tax at source. So advance tax applies to those who have other sources of income other than what they receive though salary. This would include income through capital gains on shares and mutual funds on the interest earned through FDs, rent received from house property and also any winnings earned through a lottery. Self –employed individuals and businessmen also need to pay advance tax.
The Income Tax Department has a calculator to collect advance tax at incometaxindia.gov.in. You need to enter details like type of taxpayer, income tax, surcharge, cesses, total tax liability and so on to calculate advance tax.
The advance tax payment due dates are on or before June 15, September 15, December 15 and March 15. By these dates one needs to pay 15 per cent, 45 per cent, 75 per cent and 100 per cent of estimated advance tax.
The next advance tax payment date is 15th December. Both public and private sector banks are authorised to collect advance tax. RBI can collect advance tax too.
However, if you have not paid this instalment of advance tax yet, you can pay it online. The process takes around 15 minutes. Here are the steps.
1. Visit the official website of TIN tax e-payment page
2. Click on ‘click to pay taxes online’
3. Select Challan 280
4. You will be redirected to a form. Fill it up in 30 minutes
5. Enter the captcha code and click
6. The name of the PAN number you have entered when filling up the challan will appear
7. Click on submit
8. You will be redirected to netbanking page of your bank
9. Clarify the information before you make the payment
10. Once you make the payment is done you will get a receipt. Save a copy or screenshot