How to do Advance Tax e-payment online
Want to pay your advance tax online? This article provides the step by step procedure to paying your advance tax online at the IT Department official e-payment website.
Taxes are one thing everyone dreads, but pay them we must! One of the taxes you may need to pay is Advance Tax. It is known as 'advance' tax as it refers to paying your tax liability in part beforehand when you earn the income rather than paying the full amount at the end of that financial year. You need to pay the advance tax irrespective of whether you are a salaried individual or self-employed or whether you are a corporate entity or a businessman.
Who has to pay advance tax Advance tax is applicable on the income on which the tax deducted at source (known as TDS) is not paid or the tax was on a lower deducted rate. If you are employed and are having an income solely from the job, then you do not have to pay any advance tax. However, if you do have some income from a mutual fund or property or other sources, then you must pay the advance tax. The obligation to pay the advance tax will arise when Advance tax liability arises when your balance tax liability is Rs. 10,000/- or more.
Your income sources could include:
Note that if you are a senior citizen who does not have any business income, then you do not have to pay any advance tax.
Important dates for filing advance tax There are 3 times in a financial year when you pay advance tax. This is applicable for individuals who are in the bracket of non-corporate assesses:
Take an example: Let's say you are obliged to pay IT of Rs.2,00,00 for a year. By 15th September you will need to pay an advance tax of Rs.60,000; by 15th December again Rs.60,000 (that would make it 60% with a total of 1,20,000 being paid by this time) and by 15th March you will be paying Rs.80,000.
In the case of a company, the schedule is as follows:
You can use the online advance tax calculator of the Income Tax Department, Govt. of India, to know how much advance tax you need to pay. Visit: http://www.incometaxindia.gov.in/Pages/tools/advance-tax-calculator.aspx
PenaltiesIn the event that you make a late payment on the advance tax, you will need to pay interest on it. (See: Tax Saving Tips
Under Section 234C of IT Act: Interest of 1% per month if you have not paid the requisite instalment of the advance tax. The same interest of 1% per month is also applicable if you have paid lesser than the percentage required to be paid.
Under Section 234B of IT Act: Interest of 1% per month if you have not paid any advance tax during the financial year. The same interest of 1% is also applicable if it was less than 90%.
How to pay Advance Tax offline One of your options to pay the Advance Tax is to download the requisite form, namely Challan No.280 and submit it along with the tax amount to a Bank which accepts advance tax payment through its branch.
Your other option is to file the advance tax online through the e-payment portal provided by the Govt. of India.
Step by step process to pay advance tax onlineFirst of all, you must have a valid Net-banking account with an authorized bank.
For a confirmation about your payment having been made to the IT Department, you can check at: https://tin.tin.nsdl.com/oltas/servlet/QueryTaxpayer
Also Read: How to correct mistakes in online tax returns
Things to keep in mind:
There is a positive side to paying advance tax in the electronic mode: It is hassle free!