ADVANCE TAX – Due Date, Calculation and How to Pay Online

ADVANCE TAX:

Navigation:

1. INTRODUCTION TO ADVANCE TAX

2. WHEN DOES LIABILITY FOR ADVANCE TAX ARISES

3. WHO ARE EXEMPT FROM PAYING

3. CALCULATION AND DUE DATES OF ADVANCE TAX

4. HOW TO PAY ADVANCE TAX ONLINE

5. PENALTIES FOR NOT PAYING AND SHORT PAYMENT OF ADVANCE TAX

Introduction

Advance Tax refers to income tax which is required to be paid in advance instead of paying it in lump sum after the end of the year. In other words, Income (Salary, Profits from Business, Interest, etc) earned during the Financial Year 2019-2020 shall be paid during the same year in multiple instalments. Due date, Calculation of advance tax and category of tax payers who are exempt from paying advance tax are discussed in this article.

Who should pay Advance Tax

: Any tax payer including business entities like whose Income Tax liability is Rs.10,000 or more in any financial year he shall be liable to pay advance tax.

• Advance tax applies to all the Tax Payers viz-a-viz Salaried Employees, Freelancers and Businesses.
• Senior citizens are exempt from paying advance tax provided such senior citizen satisfies the following 2 conditions:
  • 60 years or older (as on 31^st of March of the relevant financial year) and
  • Who does not have income from business/profession
• Business persons and professionals who have adopted for Presumptive taxation scheme under Sec 44AD and Sec 44ADA have to pay the whole of their advance tax only in one instalment i.e, on or before 15^th March 2020.

Due Dates and Calculation for Payment of Advance Tax

Advance Tax Schdedule for FY 2019-20 for both individual and corporate taxpayers

Instalment	Due Date	Advance Tax Payable
First	On or before 15th June 2019	15% of Estimated Tax for the Year
Second	On or before 15th Sep 2019	45% of Estimated Tax for the Year LESS Advance Tax Already Paid
Third	On or before 15th Dec 2019	75% of Estimated Tax for the Year LESS Advance Tax Already Paid
Fourth	On or before 15th Mar 2020	100% of Estimated Tax for the Year LESS Advance Tax Already Paid

                                            

For taxpayers who have opted for Presumptive Taxation Scheme under section 44AD & 44ADA – Business Income

Due Date                                              Advance Tax Payable

On or before 15th March 2020                          100% of advance Tax