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:
  • Earning rent on property

  • Capital gains

  • Earnings from shares and mutual funds

  • Earnings from interest

…etc.
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:
  1. You pay not less than 30% of the tax payable on or before 15th September

  2. You pay not less than 60% of the tax payable on or before 15th December

  3. You pay not less than 100% of the tax payable on or before 15th March

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:
  1. You pay not less than 15% of the tax payable on or before 15th June

  2. You pay not less than 45% of the tax payable on or before 15th September

  3. You pay not less than 75% of the tax payable on or before 15th December

  4. You pay not less than 100% of the tax payable on or before 15th March

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

Penalties

In 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 online

First of all, you must have a valid Net-banking account with an authorized bank.
  1. Go to: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and click on 'CHALLAN NO./ITNS 280'

  2. The first detail you need to enter is your valid 10-digit Permanent Account Number (PAN). You name as per the IT Database will then appear later on the confirmation screen.

  3. Select the Assessment Year from the drop-down list.

  4. Fill up the fields for your address – flat number, building, road, area, city name, State and Pin code.

  5. Give contact information – email ID and phone number

  6. Under the heading of 'Type of Payment' select Advance Tax option (see image below)

  7. Advance Tax e-form
  8. Select Bank name from the drop-down list provided

  9. Fill in the CAPTCHA (the distorted words-numbers image)

  10. Click on the Proceed button to go ahead with the online payment.

  11. Once the online payment is successful, you will immediately see on the screen a challan counterfoil. This will have a challan identification number, known as CIN. You will require this CIN for you IT return.

  12. Make sure you take a print out of the challan counterfoil. Keep a backup of it too on your laptop or, better still, a pen drive

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
Advance Tax Challan status inquiry page

Also Read: How to correct mistakes in online tax returns

Things to keep in mind:
  • You cannot leave any box empty if it is marked with an asterix * These are mandatory details which are required for the Challan.

  • There will be a provision to enter the requisite tax amount is given in your Bank's site.

  • In case you face a problem when entering data that is not financial in nature, you can contact the call center at: Ph. 020 – 27218080. Alternately, you can send an email to: In the subject line of the email, you should mention 'Online Payment of Advance Tax'. In case you face a problem when entering data during the Net-banking stage, then you need to contact your Bank.

There is a positive side to paying advance tax in the electronic mode: It is hassle free!


Article by Vandana
Vandana is a freelance content writer with over 15 years experience in this field. As Managing Editor of reputed education portal IndiaStudyChannel.com, she has plenty of responsibilities but nevertheless finds time to indulge in her favourite past-time, namely writing! Hence she has her own blogs to follow her writing passion while here at Techulator.com she writes mainly about gadgets, smart devices and apps.

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