⚠️ Today’s the deadline for the third installment of the advance tax payment: December 15, 2023!
⚠️ What is an Advance Tax?
– Payment made in the same year as the earned income.
– ‘Pay as you earn’ concept.
⚠️ Who Pays Advance Tax?
– If tax liability exceeds Rs 10,000 after TDS deduction.
– Liability paid in the same financial year.
⚠️ Who is Exempt?
– Resident senior citizens without business income.
– Those under a presumptive taxation scheme (section 44AD or section 44ADA).
⚠️ Advance Tax Due Dates:
– June 15: 15% of advance tax
– Sept 15: 45% (- taxes paid)
– Dec 15: 75% (- taxes paid)
– Mar 15: 100% (- taxes paid)
⚠️ Capital Gains and Casual Income:
– Tax applicable on total income, including capital gains.
– Tax on such income paid in remaining installments if received after due dates.
⚠️ Assessee-in-Default:
– Default if the advance tax is not paid on time.
– Failure to file an intimation in Form 28A before the due date.
⚠️ Choosing the Right Assessment Year:
– Pay attention to details in the challan.
– Select the correct head of payment, tax amount, and method.
– Choose the correct Assessment Year (AY) – 2023–24 for the fiscal year 2022–2023.
⚠️ Calculating Advance Tax:
– Estimate current-year income.
– Deduct TDS/TCS for the current year.
– Determine the advance tax liability.
⚠️ Interest on Late Payment or Non-Payment:
– Sec 234B: 1% interest if 90% of the tax is not paid by fiscal year-end.
– Sec 234C: Gradual interest on each installment if not paid on time.
