When Should Advance Tax Be Paid?

How is advance tax calculated?

How to calculate advance Tax.

Advance tax can be calculated by applying the slab rate applicable to a financial year on his total total estimated income for that year.

For example your total income for FY 2018-19 is Rs.

5,50,000, then your estimated liability is Rs..

What is the penalty for late payment of advance tax?

Here’s how you calculate the interest for late payment of advance tax:Period of Amount on whichRate of InterestIf Advance Tax paid on or before December 15 is less than 75% of the Amount*Simple interest @1% per monthIf Advance Tax paid on or before March 15 is less than 100% of the Amount*Simple interest @1% per month2 more rows•May 9, 2018

What if advance tax due date is Sunday?

If on the due dates is Sunday or any holiday then the assesee can deposit the advance tax on next working day. It will treated as advance tax and no penal interest will be charged. … The penal interest at the end of the financial year will be calculated by the delay from the due date of particular installment.

Is TDS date extended?

Due date for payment of TDS In this context, it should be noted that the government has never extended the due date of payment of TDS even under the Ordinance, 2020. However, certain relaxation is provided in the chargeability of interest if the same is paid by June 30, 2020, the period which is over now.

Who will pay advance tax?

As per 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”. In this case, the tax liability amounts to Rs.

Is it mandatory to pay advance tax?

Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. Advance tax applies to all taxpayers, salaried, freelancers, and businesses. … They have to pay the whole of their advance tax liability in one instalment on or before 15 March.

Can salaried person pay advance tax?

Advance Tax is applicable to any assessee, including salaried employees, whose tax liability for the financial year as reduced by the tax deducted / collected at source is Rs 10,000 or more. Salaried people have to be careful about the money they have put in a savings bank account.

Can advance tax be paid after 31st March?

If you miss the Deadline of 15th September In case you are unable to pay advance tax on time, or there are any shortfalls in the advance tax paid by you, you can still pay advance tax latest by the 31st March of the same financial year.

What happens if I don’t pay advance tax?

If you have to pay Rs 10,000 or more in taxes in a financial year, advance tax may be applicable to you. Advance Tax means paying your tax dues on the due dates provided by the income tax department. If you don’t pay advance tax on time or default completely, you may be liable to pay interest under section 234B.

Can advance tax be paid after 15th March?

However, under the reliefs provided by government due to Covid-19, the last date for payment of advance tax was extended from 15th March 2020 to 30th June 2020. So we suggest taxpayers to deposit taxes before 30th June to avoid any interest on tax liability,” he concluded.

Is TDS payment date extended?

Saraswathi Kasturirangan, Partner, Deloitte India says, “Yes, the government has extended the date for filing TDS returns by the employer from May 31, 2020 to June 30, 2020 for the FY 2019-20. Similarly, the last date to issue Form 16 by the employer to employee has also been extended to June 30, 2020.”

What is the percentage of advance tax?

Advance Tax in IndiaAdvance Tax Due DatesAdvance Tax Payable*On or before 15th June15%On or before 15th September45%On or before 15th December75%On or before 15th March100%

Is Advance tax date extended?

Regarding interest payment on delayed tax payments, Iyer says, “The date of last instalment of advance tax payment is March 15 and is not extended but for the interest for delayed deposit of advance tax due on March 15 will now be computed at 9 per cent instead of 12 per cent for the period starting March 20 until June …

What if advance tax is paid after due date?

However, as the capital gain cannot be estimated in advance, advance tax is paid on all capital gains when they arise in the immediately next advance tax due date….Due Dates of Advance Tax.ADVANCE TAX DUE DATESPERCENTAGE OF ADVANCE TAX PAYABLEBy 31st March100% of advance taxMay 9, 2020

What is the benefit of advance tax?

By paying in advance, you help the government and also yourself by not finding it hard to pay the whole tax at one go at the end. This way, if your advance tax liability for the financial year 2017-18 has exceeded Rs 10,000, you are expected to pay it in the same financial year.