ADVANCE TAX

Advance tax is the income tax paid in advance. It is also known as pay as you earn tax.

Who pays

Any person whose total tax liability is Rs 10,000 or more after reducing TDS in a financial year have to pay advance tax. 

 
Exempt

In a bid to make life easier for senior citizens, and to reduce their overall burden of tax compliance, Section 207 was ratified in the financial year 2012 - 2013 to state that any senior citizen will not have to pay advance tax provided the following conditions are fulfilled:

• The senior citizen is an individual
• The senior citizen in question is a resident of India
• The senior citizen is an individual who is at least 60 years or more in age
• The senior citizen does not earn any income that can be charged under the heading - Profits and gains of business or profession

INTEREST FOR NOT  PAYMENT  234B and 234C 

• What happens if I miss the deadline for payment of the fourth installment of my advance tax i.e. on 15 March
  You can still go ahead with payment of advance tax on or before the 31 March of the year. Such payment will still be treated as advance tax only.
• How do I make an advance tax payment
  Advance tax payment is made using Challan 280 just like any other regular tax payment. You may read our detailed article on online payment of income tax.
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