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Business
08 Jun 2018

Deadline to file 'advance tax' is June 15: Details here

File advance tax 1st instalment by June 15

If you have not yet paid the first instalment of your advance tax, then you should file it no later than June 15 to avoid a penalty.

But what is advance tax and how can you calculate it?

Get all your questions answered here.

In context

File advance tax 1st instalment by June 15
What is advance tax and when is it payable?

Details

What is advance tax and when is it payable?

Advance tax refers to the part of your yearly taxes which you pay in advance. It helps you divide your tax liability over the year instead of paying a lump-sum amount at year-end.

You are liable for payment of advance tax if your tax liability for a financial year exceeds Rs. 10,000.

It should be paid in the FY for which you have received the income.

Details

Who needs to pay advance tax?

In case of salaried individuals, the payment of advance tax is taken care by their employer who deducts TDS from the salary.

But, if your source of income is through business, capital gains, house property or any other source, then you fall under the ambit of this tax.

Resident senior citizens (60yrs or above), not having income from business/profession, are exempted from paying advance tax.

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How to calculate how much advance tax is payable?

Calculation

How to calculate how much advance tax is payable?

You can compute the amount of advance tax by estimating your total income for the year and then calculating your tax liability in accordance with the applicable tax slab for that financial year.

You can also calculate it online on the Income Tax Department's official website, https://www.incometaxindia.gov.in/pages/tools/advance-tax-calculator.aspx.

Schedule

Due dates for instalments of advance tax for FY 2017-18

Advance tax for a financial year is payable in four instalments. The due dates for the financial year 2017-18 are as follows:

1st Instalment (15% of estimated advance tax): June 15, 2018

2nd Instalment (45% of estimated advance tax): September 15, 2018

3rd Instalment (75% of estimated advance tax): December 15, 2018

4th instalment (100% of estimated advance tax): March 15, 2019.

How to pay advance tax online?

Online

How to pay advance tax online?

You can pay advance tax both online and offline.

To make the advance tax payment online, login on the Income Tax department's website (https://www.incometaxindiaefiling.gov.in/home) and click on the 'e-Payment of Taxes' tab to get directed to the payment website.

Then, under the 'Services' tab, select the 'e-payment' option and then select Challan 280.

After entering the required details, make the payment through net banking.

Offline

How to pay advance tax offline?

To make the advance tax payment offline, you can visit a bank authorized by the Income Tax department and make the advance tax payment using tax payment challans.

The list of authorized banks includes commercial banks like ICICI Bank and HDFC Bank, public banks like Allahabad Bank and State Bank of India, along with the central bank Reserve Bank of India, among others.

What happens if you fail to pay advance tax?

"If advance tax paid is less than 90% of the assessed tax, then you are liable to pay interest under Section 234B at the rate of 1% per month from the beginning of the assessment year till the payment thereof," said Nangia, partner, Nangia Advisors LLP.

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Most asked questions

What benefits would I get by filing return of my income?

Who can use ITR 5?

Are leave encashments also taxable as salary?

Are family pensions also taxed at salaried income?

I have got arrears of rent. What would be the tax treatment for it?

I have incurred a loss in my business. Should I still file returns?

What are the benefits of e-filing the returns?

What is the difference between e-filing and e-payment?

How many times can we revise our returns?

What is form 26 AS?

Can I file a return after the due date?

How to electronically file a return of income?

My company has not issued me any TDS certificate. Can I still claim TDS in my return of income?

What is the difference between PAN and TAN?

What is the minimum amount up to which tax is not deducted?

No tax has been deducted from my salary. Should my employer issue Form-16 to me?

What is considered as income from salary?

More questions

What benefits would I get by filing return of my income?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

Filing of return is your duty and earns for you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc.

Who can use ITR 5?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

Form ITR-5 can be used by a person being a firm, LLP, AOP, BOI, artificial juridical person, cooperative society, and local authority.

Are leave encashments also taxable as salary?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of the non-Government employee, leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.

Are family pensions also taxed at salaried income?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

No, it is taxable as income from other sources.

I have got arrears of rent. What would be the tax treatment for it?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

The amount received on account of arrears of rent (not charged to tax earlier) will be charged to tax after deducting a sum equal to 30% of such arrears. It is charged to tax in the year in which it is received. Such amount is charged to tax whether or not the taxpayer owns the property in the year of receipt.

I have incurred a loss in my business. Should I still file returns?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date.

What are the benefits of e-filing the returns?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

E-filing can be done from any place at any time and it saves time and efforts. It is simple, easy and faster. The e-filed returns are generally processed faster as compared to returns filed manually.

What is the difference between e-filing and e-payment?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

E-payment is the process of electronic payment of tax (i.e., by net banking or SBI's debit/credit card) and e-filing is the process of electronically furnishing of return of income. Using the e-payment and e-filing facility, the taxpayer can discharge his obligations of payment of tax and furnishing of return easily and quickly.

How many times can we revise our returns?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

If a person after furnishing the return finds any mistake, omission or any wrong statement, then return should be revised within the prescribed time limit. A return can be revised before the end of the Assessment Year or before the completion of the assessment; whichever is earlier. (w.e.f A.Y 2018-19). For more information, check this link.

What is form 26 AS?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

Form 26AS is an annual statement maintained under Rule 31AB of the Income-tax Rules disclosing the details of the tax credit in his account as per the database of Income-tax Department. In other words, Form 26AS will reflect the details of tax credit appearing in the Permanent Account Number of the taxpayer as per the database of the Income-tax Department. For more, check the link.

Can I file a return after the due date?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

In the assessment year 2017-18, any person who has not furnished a return of income within the time period allowed under section 139(1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before completion of the assessment, whichever is earlier. From A.Y 2018-19 and onwards a belated return attracts late filing fees. More.

How to electronically file a return of income?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

​​Income-tax Department has established an independent portal for e-filing of return of income. The taxpayers can log on to www.incometaxindiaefiling.gov.in for e-filing the return of income.​

My company has not issued me any TDS certificate. Can I still claim TDS in my return of income?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

Yes, the tax credit in your case will be reflected in your Form 26AS and, hence, you can check Form 26AS and claim the credit of the tax accordingly. However, the claim of TDS to be made in your return of income should be strictly as per the TDS credit being reflected in Form 26AS. For more details, check this link.

What is the difference between PAN and TAN?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

PAN stands for Permanent Account Number and TAN stands for Tax Deduction Account Number. TAN is to be obtained by the person responsible to deduct tax, i.e., the deductor. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS, one has to quote his TAN. For more details, check this link.

What is the minimum amount up to which tax is not deducted?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

In respect of various items liable to TDS, the Income-tax Law has prescribed a threshold limit. If the expenditure incurred/payment made during the year is below the threshold limit, then there is no requirement to deduct tax at source. For more information, please check this link.

No tax has been deducted from my salary. Should my employer issue Form-16 to me?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

Form-16 is a certificate of TDS. In your case, it will not apply. However, your employer can issue a salary statement.

What is considered as income from salary?

Asked on 08-06-2018 by Anonymous -

Answered by NewsBytes

Section 17 of the Income-tax Act defines the term 'salary'. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [prerequisite] is considered as salary. For more information, please check this link.

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