Advance Tax Payment

Advance Tax Payment



Who is liable to pay the Advance Tax?

A taxpayer whose total estate tax liability exceeds Rs 10000 after TDS and TCS is liable to pay the Advance Tax.

Who is not liable to pay the Advance Tax?

A resident who is 60 years of age or senior citizen at the time during the financial year, who is not having any income from business or profession is not liable to pay advance tax.

How to calculate Advance Tax?

Income under 5 heads of income                                                                      XXX


–Brought forward losses and allowances                                                          XXX


=Gross Total Income                                                                                          XXX


–Chapter VI-A Deductions                                                                                XXX


=Estimated Total Income                                                                                   XXX


Income tax on estimated total income                                                               XXX


+Surcharge on the above


-estimated income                                                                                              XXX


=Total Tax payable                                                                                             XXX


–Relief under section 89                                                                                    XXX


=Tax liability                                                                                                       XXX


+2% educational cess                                                                                          XXX


+1% SHEC                                                                                                           XXX


=Total tax liability                                                                                                XXX


–Relief of tax US 90,90A,91                                                                               XXX


–MAT credit US 115JAA                                                                                     XXX


–TDS as shown in Form 16/Form 16A and reflected in Form 26AS                   XXX


=Advance Tax Liability                                                                                        XXX 

Important Points


  • A taxpayer having income from business and profession declaring the income under estimated scheme US 44AD or 44ADA is required to deposit the whole amount of advance tax by 15th March of the financial year.
  • The amount deposited by the 31st march of the financial year is treated as the advance tax for the financial year.
  • TDS is treated as an advance tax in case of a salary earned by an employer. (salary people will also pay tax in the shape of TDS) 

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