5 smart things you should know about advance tax

9:12 AM
1. Income tax that needs to be paid in installments during the year instead of lump sum payment at yearend is known as advance tax or “pay as you earn tax”.

2. If the total tax liability of any taxpayer is more than Rs 10,000 in a financial year then he is liable to pay advance tax during the year.

3. Advance tax applies to all tax payers, salaried, freelancers and businessmen. Senior citizens not having any business income are exempt from payment of advance tax.

4. Advance tax is payable in instalments with 15% on or before 15 June, 45% on or before 15 September, 75% on or before 15 December and 100% of needs to be paid on or before 15 March.

5. For individuals with salary as the sole income, advance tax is taken care of by TDS deducted by the employer at the time of crediting salary.

Content courtesy: Centre for Investment Education and Learning (CIEL)
(Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta)

Source: Economic TImes

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