Advance Tax – Due Dates

Advance Tax is covered under Section 208 of Income Tax Act. As per this Section, every person whose estimated tax is Rs.10,000 or more shall pay the tax in advance in the form of Advance tax.

Advance Tax – Due Dates  

Advance tax is permitted to be paid in instalments as shown below:

The above due dates are not applicable for those assessees who have opted for Presumptive Taxation Scheme under  u/s 44AD/44ADA.  For those who have covered under Presumptive Taxation Scheme shall make 100% of advance tax payable latest by 15th March of the financial year.

When the Advance Tax due date falls on a bank holiday, the assessee shall make payment on the immediately following working day.

Advance Tax – Exemptions

• Advance Tax is not payable where the tax liability does not exceed Rs. 10,000.
• Senior citizens not having any business or professional income are not required to make advance tax.

Mode of payment of Advance Tax

A corporate tax payer (company) must pay the advance tax through electronic payment mode (internet banking facility) of authorised banks.  Tax payers other than companies, but who are required to get their accounts audited shall also use electronic payment mode. Other tax payers are given freedom to pay through electronic payment mode or through physical mode ( through challan at any bank authorised to receive payment).  

Advance Tax – Payment

A taxpayer can pay advance tax either on his own account or in pursuance of an order by an assessing officer.  

A tax payer who is liable to pay advance tax shall estimate his income and pay advance tax on his own account. He is not required to submit any estimate or statement of income to the tax authorities. If there is a change is tax liability after payment of an instalment of advance tax, then the quantum of remaining instalments shall be revised suitably.

If a taxpayer, who has already been assessed by way of regular assessment in respect of the total income of any previous year, fails to pay advance tax or the amount paid is on lower side, then the Assessing Officer may pass an order demanding advance tax. Such an order shall be passed during the same financial year, but before the last day of February.  If the assessment of taxpayer is lower, then he can submit his own estimate of current income/advance tax and pay tax accordingly under  intimation in Form No. 28A to the Assessing Officer. If the advance tax assessed by the  taxpayer is likely to be higher than the amount estimated by the Assessing Officer, the taxpayer shall pay  higher amount as advance tax in accordance with his own estimate. In such a case, no intimation to the Assessing Officer is required.