Only one day is left to pay second instalment of advance income tax for fiscal year ending March 2019. Advance tax refers to paying a part of yearly taxes in advance, instead of lump sum payment at year end. These payments have to be made in installments as per due dates provided by the Income Tax Department. According to section 208, every person whose estimated tax liability for the year is Rs 10,000 or more, shall pay his tax in advance, in the form of 'advance tax', said Income Tax Department on its official website- incometaxindia.gov.in.
Here are 5 things to know about advance income tax payment:
1. The due dates for payment of different instalments of advance tax are as follows: a) On or before September 15, 2018, you have to pay 45 per cent of the payable tax, b) On or before December 15, 2018, you have to pay 75 per cent of the payable tax, c) On or before March 15, 2019, you have to pay 100 per cent of the payable tax.
2. A resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax.
3. As per rule 125 of the Income-tax Rules, 1962 a corporate taxpayer shall pay taxes through the electronic payment mode using the internet banking facility of the authorised banks. Taxpayers other than a company, who are required to get their accounts audited, shall also pay taxes through the electronic payment mode using the internet banking facility of the authorised banks. Any other taxpayer can pay tax either by electronic mode or by physical mode i.e. by depositing the challan at the receiving bank, said Income Tax Department.
4. Advance tax can be paid by the taxpayer either on his own account or in pursuance of an order of the assessing officer.
5. Short/ non-payment/ deferment of payment of advance income tax results in a levy of interest.