- In accordance with the provisions of Income Tax Act, 1961 tax shall be payable in advance during the financial year in respect of total income of the assessee which would be chargeable to the tax for the assessment year immediately following that financial year. The Income earned during the FY 2021-22 shall be charged to tax in assessment year 2022-23 however the assessee is required to pay income tax in advance during the financial year 2021-22 itself.
- As per the provision of Income Tax Act, 1961, resident senior citizens are not required to pay advance tax in India if they don’t have any income chargeable under the head Profits and Gains of Business or profession.The advance tax is always paid on the basis of estimated total income to be earned during the financial year for which the tax is being paid.
The advance tax is paid in four instalments during the relevant financial year. The due date for the payment of advance tax is as under:
| Due date of instalment |
Amount payable |
| On or before the 15thJune |
Not less than 15% of such advance tax |
| On or before the 15th September |
Not less than 45%of any such advance tax, as reduced by the amount, if any paid in the earlier instalment. |
| On or before 15th December |
Not less than 75%of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. |
| On or before 15th March |
The whole amount of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment and instalments. |
- Where an assessee opting to pay tax in respect of eligible business as per section 44ADor an eligible profession referred in section 44ADA, such person is liable to pay advance tax to the extent of whole amount during each financial year on or before 15th March.
Taxcellent assist in advance tax calculation and payment of advance tax as and when required on due dates. We also serve the Income Tax Return Filing in Delhi NCR.
