As per Section 208 of the Income Tax Act, advance tax has to be paid by those people whose tax liability is more than Rs 10,000.
Income Tax Return Latest Update: If you are planning to pay your advance tax, then December 15 is the deadline for you. The second installment of advance tax for the third quarter of the financial year 2024 needs to deposited by December 15. However, if you fail to pay advance tax within the deadline, you will have to pay penalty. Apart from this, you will also have to pay interest for delay.
What Is Advance Tax?
Every taxpayer must know that the advance tax is a type of income tax, which has to be deposited with the Income Tax Department before the end of the financial year. Advance tax is not paid in lump sum on annual basis like normal tax, but it is being deposited in installments.
Who Pays Advance Tax?
As per Section 208 of the Income Tax Act, advance tax has to be paid by those people whose tax liability is more than Rs 10,000. This applies to employed people, freelancers, businessmen and people who earn money in some other way. If your age is more than 60 years, those who do not do any kind of business are exempted from advance tax.
When You Have to Pay Advance Tax?
You don’t have to pay Advance tax in lump sum once a year like normal tax, but has to be paid in installments. It has to be paid every quarter.Its date is decided by the Income Tax Department. For the Financial Years 2022-23 and 2023-24, these dates are June 15, September 15, December 15 and March 15.
What Happens If Advance Tax Is Not Paid?
In case of employed individuals, TDS is often not deducted properly by the companies and advance tax liability is created. In that a situation, you will have to check and deposit advance tax, otherwise penalty will be levied on you and you will also have to pay interest. If there is default in payment of advance tax, penalty is imposed under section 234B and 234C. Section 234B is imposed for delay in payment of advance tax or shortfall in tax payment.