2023-11-26 10:58:46
Title: Understanding Advance Tax and How to Pay it Online
Advance tax is defined as payment of a certain amount of tax by income tax payers before the end of a particular financial year. A financial year ends on 31st March. Tax is calculated on the income earned in that financial year and the tax is to be paid and filed by the specified date in the next financial year. But you have to pay income tax in advance based on certain calculations when you earn income before the end of that financial year. This will help taxpayers avoid the problem of suddenly having to pay huge amounts of tax. At the same time, it will also be a mechanism for the government to have a steady stream of income throughout the year.
The last date for payment of specified amount as advance tax every year is 15th March of that financial year. The last date for payment of advance tax for the financial year April 2023 – March 2024 is March 15, 2024.
Generally, tax is deducted from those who work as employees in a company and receive income as salary. Those who do not pay advance tax. But those who are salaried employees have to pay tax in advance when they get income from other sources. Advance income tax can be paid using online bank account or net banking just like income tax payment.
There are certain terms and dates for advance payment. Those who want to pay advance taxes should calculate the approximate amount of income tax they will have to pay. From there you have to tie the line.
Estimated from the total amount of income tax payable by you in the current financial year
15% amount should be paid by 15th of June.
45% amount should be paid by 15th of December.
The remaining amount should be paid by 15th March.
If you may have to pay more income tax than the advance amount you have made, you can pay the remaining amount when you file your income tax return. Or if you have paid additional advance amount as tax, the additional amount will be refunded to you.
If you are an income tax payer of more than ₹10,000 in a year then you definitely need to pay advance tax.
Do not pay advance tax in two situations if you are a senior citizen i.e. an income tax payer above 60 years of age and you have no business income.
To pay advance tax online, follow these steps:
Step 1: Go to the official website of Income Tax Department.
Step 2: On the website, click on ‘e-pay tax’ under the ‘Quick Links’ option.
Step 3: Enter your PAN, and mobile number and click Continue.
Step 4: Enter the OTP received on your mobile number and click on ‘proceed’.
Step 5: Select ‘Income Tax’ in the first box and click ‘continue’.
Step 6: Enter all the requested details. (Assessment Year, Email, Address, Mobile Number, etc.)
Step 7: After entering all the details you will be redirected to your bank account net banking.
Step 8: Enter your challan number after verifying the payment details in Net ZeeBanking.
Step 9: After paying the tax the payment process is complete and you will get a confirmation message.
Understanding and paying advance tax in a timely manner is important for all income taxpayers. It ensures a smooth process for both taxpayers and the government, and helps in avoiding any penalties or legal issues related to tax payments.
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