Advance Tax and its Payment Advance Tax is nothing but, Income Tax paid in advance instead of paying the entire amount at the end of the year. Advance Tax is also known as pay as you earn tax. The payment should be made in instalments, as per the due dates provided by the Income Tax Department. Who is required to pay Advance Tax?
For Salaried Individuals, Freelancers and Businesses
Anyone who has a tax liability of Rs.10,000 or more in a given Financial Year, then in that case the taxpayer is required to pay this Tax. Advance Tax is applicable to Salaried Individuals, Freelances and Businesses. Senior Citizens, who are 60 years or above and in age and do not run any business then, they are exempt from paying Advance Tax.
Taxpayers who have opted for Presumptive Business Scheme, where a taxpayer’s business income is assumed to be 8% of the turnover if the turnover is less than Rs. 2Cr are exempt from paying this Tax for the Financial Year 2017-18. Filing Income Tax Return How to Calculate Advance Tax? It can be calculated by taking into the consideration the tax rates applicable in relevant Financial Year. Income earned during the previous financial year can be taken as the taxable income for the calculation of advance tax liability. The taxpayers who have opted for Presumptive Taxation Scheme under Sections 44AD and 44ADA are required to pay the 100% of Advance Tax by 15th March, as it is the only due date for such taxpayers.
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Advance Tax and its Payment
Advance Tax and its Payment Advance Tax is nothing but, Income Tax paid in advance instead of paying the entire amount at the end of the year. Advance...