The last day for filing advance tax for income earned in the current financial year 2022-2023 is on Wednesday. A person whose estimated liability for the financial year is ₹10,000 or more has to pay the tax in advance. However, it does not apply to senior citizens, those of age 60 years or above, who do not have income from business or profession.
Read here: Advance tax to PAN-Aadhaar link: 5 important financial deadlines in March
Salaried persons who don’t have any income other than salary also need not pay advance tax instalments as employers deduct the applicable tax from the monthly salary.
The Income Tax department also appealed to taxpayers to pay their last installment of advance tax by the due date.
“Attention Taxpayers! The last date for payment of the last instalment of Advance Tax is almost here! Do remember to pay your fourth & final instalment of Advance Tax by 15th March, 2023”, the tax department said in a tweet.
What is advance tax?
As per the Income-Tax Act, an individual with an estimated tax due of ₹10,000 or more after Tax Deducted at Source (TDS) deduction is required to pay advance tax in instalments of 15%, 45%, 75 % and 100%, on or before June 15, September 15, December 15 and March 15, respectively.
Penalty if failed to pay Advance tax:
In case of failure in payment of advance tax on time could lead to a penalty on taxes under section 234B and 234C of the Income Tax act. If the taxpayer does not pay the entire amount of the advance tax or if the advance tax paid is less than 90% of the total tax liability, interest under section 234B is levied. If the advance tax paid is less than the prescribed percentage of the instalment amount, an interest of 1% per month or part of the month from April till the date of payment of tax, under section 234C is levied.
How to pay advance tax:
1. Log in to the official website of the income tax department www.incometax.gov.in and click on the e-payment facility.
2. Select the ITNS 280 form for the payments of advance tax for individuals.
3. Choose the code for the advance tax and fill up the name, address, PAN, mobile number, and other details in the form.
4. Click on proceed.
Read here: Step-by-step guide to check PAN card validity
5. Make payment at the payment gateway page.
6. After the payment, Challan 280 receipt will be generated.
7. Save the copy of the receipt for future references.