An individual shall be liable to pay Advance Income Tax on income of current financial year on estimation basis, during a financial year in which such income is earned if the amount of income tax payable on such estimated income after deducting TDS exceeds ten thousand rupees or more. Individuals are liable to pay in three installments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified below:
|Due date of instalment
|On or before the 15th September
|30% of such advance tax.
|On or before the 15th December
|60% of such advance tax. (inclusive of first instalment)
|On or before the 15th March
|100% of such advance tax. (inclusive of earlier two instalments)
Provisions of advance tax payment:
- No advance tax is payable if the total tax liability after reducing the tax deducted at source is less than Rs. 10,000.
- If advance tax paid by the assessee is less than 90 per cent of the total tax payable by 31st March, then interest u/s 234B shall be paid @1% per month on the deficit amount from April 1 of the following year till the date of filling of return.
- If advance tax is not paid in full for instalments falling due on 15th September and 15th December, interest @1% on the short amount for 3 months is to be paid u/s 234C.
- If advance tax is not paid in full for instalments falling due on 15th March, interest @1% on the short amount for 1 month is to be paid u/s 234C.
However, provision of section 234C shall not apply to any short fall of the tax due on the income where such short fall is on account of under-estimate or failure to estimate
- Capital Gains;
- Any winning from lottery, crossword puzzles, races, card game and other game of any sort or from gambling or betting of any form or nature whatsoever.
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