Earnings tax alert: Pay your first instalment of advance tax by this date

The earnings tax division has reminded the taxpayers to pay their first installment of the advance tax. The taxpayers pays 15% of the estimated tax legal responsibility by 15 June 2023. “Variety Consideration Taxpayers! Do bear in mind to pay your first instalment of Advance Tax by the fifteenth of June, 2023,” learn a tweet from the tax division.

What’s advance tax?

Advance tax is the quantity of earnings tax that must be paid in installments as per the due dates moderately than in a single lump sum.

People and companies pay earnings tax prematurely by way of instalments moderately than a lump sum on the finish of the yr. “It applies to all taxpayers, together with salaried people, freelancers, and companies, who’ve a complete tax legal responsibility of 10,000 or extra in a monetary yr,” stated Amit Gupta, MD, SAG Infotech.

Nonetheless, senior residents aged 60 years or above who wouldn’t have enterprise earnings are exempt from paying advance tax.

“For these below the presumptive taxation scheme (sections 44AD and 44ADA), your complete advance tax quantity have to be paid in a single instalment on or earlier than March fifteenth, or by March thirty first on the newest,” added Gupta.

Due dates for advance tax funds 

15 June: 15% of advance tax

15 September: 45% of advance tax much less advance tax already paid

15 December: 75% of advance tax much less advance tax already paid

15 March: 100% of advance tax much less advance tax already paid

The way to pay advance tax?

-Go to the earnings tax web site. 

-Click on on ‘e-pay tax’ 

-Enter your PAN and password 

-Now, click on on “Advance Tax” and select the fee methodology 

-You’ll be able to pay the quantity by clicking the “Pay Now” button.

-After the fee is completed, you’ll get a receipt as proof of your fee. 

What occurs if taxpayers fail to pay advance tax?

Amit Gupta stated failure to pay advance tax or late fee will lead to curiosity costs below sections 234B and 234C of the Earnings Tax Act, 1961. Well timed funds are important to keep away from penalties.

Total, advance tax funds guarantee a gentle movement of earnings for the federal government and ease the burden of paying taxes in a lump sum for people and companies. It’s essential to precisely estimate earnings and make well timed funds to keep away from curiosity and penalties.

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Up to date: 13 Jun 2023, 01:47 PM IST