IT alert! Taxpayers should pay first instalment of advance tax by June 15 or face penalty

IT alert! Taxpayers should pay first instalment of advance tax by June 15 or face penalty

Have you paid the first instalment of your advance tax yet? If not, it is time to hurry up as you are required to pay the first instalment of advance tax to the government by 15th June, 2018. The Income Tax Department has already started drawing the attention of taxpayers towards this and has warned them that “short/ non-payment or deferment of payment of advance tax will result in levy of interest.”

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Taxpayers need to know that advance tax is paid on the principle of ‘pay as you earn’ and one has to pay it during the same fiscal year in which an income is earned. As per the provisions of the I-T Act, 1961, there are prescribed due dates for payment of this tax as advance tax is payable in instalments.

The due dates for payment of Advance Tax for FY 2018-2019:

Due Date

Advance Tax Payable

On or before 15th June, 2018

15% of advance tax payable

On or before 15th September

45% of advance tax payable

On or before 15th December

75% of advance tax payable

On or before 15th March, 2019

100% of advance tax payable

It is clear, thus, that a taxpayer is required to pay 15% of advance tax payable on or before June 15, 2018; 45% on or before September 15, 75% on or before December 15, and 100% on or before 15th March, 2019.

Who are liable to pay Advance Tax?

As per the provisions of the Income Tax Act, 1961, any assessee – including salaried employees and freelancers – whose tax liability for the financial year as reduced by the tax deducted/ collected at source is likely to be Rs 10,000 or more is required to pay advance tax. However, resident senior citizens, who do not have any income from a business or profession, are not required to pay this tax.

Assessees in respect of eligible business referred to in Section 44AD are liable to pay the whole amount of advance tax on or before 15th March of the respective financial year.

How to pay Advance Tax

Advance Tax can be paid via the prescribed challan ITNS 280, which can be downloaded from the Income Tax Department’s website www.incometaxindia.gov.in. It can also be paid in the designated banks.

 

Source by financialexpress

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