Advance Tax

What is Advance Tax?

We earn income during the previous year, but we furnish the details related to income and taxes after completing the previous year. However, it is required to pay the tax in the previous year itself instead of the assessment year for a certain category of taxpayers. Such tax paid during the previous year is called advance tax.

Who is required to pay advance tax?

Any person whose tax liability for the year is more than Rs. 10,000 is required to pay advance tax.

Who is not required to pay advance tax?

Advance tax is not payable by a resident senior citizen or super senior citizen who does not have business income.
Any assessee whose tax liability does not exceed Rs. 10,000.

When to pay advance tax?

Advance tax is paid in instalments during the previous year. The due dates are as under:

Taxpayer Type	By 15th June	By 15th September	By 15th December	By 15th March
All types of taxpayers (other than those who opted for presumptive taxation scheme)	Upto 15% of advance tax	Upto 45% of advance tax	Upto 75% of advance tax	Upto 100% of advance tax
Taxpayers who opted for the presumptive taxation scheme under section 44AD and 44ADA	NIL	NIL	NIL	Upto 100% of advance tax

Consequences of not paying advance tax If the advance tax is not paid or short paid or not paid as per the instalments mentioned above, interest under section 234B and 234C shall be levied.

The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for regulating the profession of Chartered Accountancy in the country. The Institute, functions under the administrative control of the Ministry of Corporate Affairs, Government of India. The ICAI is the second largest professional body of Chartered Accountants in the world, with a strong tradition of service to the Indian economy in the public interest.

The affairs of the ICAI are managed by a Council in accordance with the provisions of the Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988. The Council constitutes of 40 members of whom 32 are elected by the Chartered Accountants and the remaining 8 are nominated by the Central Government generally representing the Comptroller and Auditor General of India, Securities and Exchange Board of India, Ministry of Corporate Affairs, Ministry of Finance, and other stakeholders.

Visit The ICAI Website

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