Advance tax

Advance tax means income tax paid in advance instead of lump sum payment at the year end. These payment have to be made in installment as per due dates provided by the income tax Act.

Advance Tax payment U/s 208:-

• Section 208 of income tax deals in advance tax payment. Any person having estimated tax liability of Rs. 10000/- or more in a year is required to pay tax in advance. This payment of tax made in advance and in installment.

Who should remit advance tax payment: 

• Any person (individual/HUF/Company/trust/LLP/ Partnership firm) whose income tax liability for the year exceeds Rs. 10000/- will be required to remit advance tax in four installment.
• Except Senior Citizen , who are 60 years or older, and do not run a business, are exempt from paying advance tax.
• Presumptive Scheme-Taxpayer, who opt for presumptive scheme U/s 44AD or U/s 44ADA  paying whole amount of advance tax in one installment.

Due dates for Payment of Advance tax U/s 211-

                          All the assessee, other then the assessee opt presumptive scheme, who are liable to pay advance tax in four installment during each financial year and the due date and amount of such installment shall be specified in the table below-

For taxpayer, who have opted Presumptive taxation scheme:-

 Note:-

1. Non Payment of advance tax will result in levy of interest U/s 234B and 234C of Income tax, Act 1961.
2. Advance tax payment is made using Challan 280.