Every Individual is liable to pay full taxes before 15^th March as advance tax, in case the amount of tax payable is Rs. 10, 000 or more. In case the tax payable after deducting TDS is less than Rs. 10,000, no advance tax is payable. Thus, for tax year ending March 2011 (April 2010 to March 2011), full taxes has to be paid by 15^th March 2011.

In case an individual fails to pay advance tax or pays less advance tax, he will be liable to simple interest @ 1 per cent per month or part of month. However, no interest will be levied where the individual has paid atleast 90 per cent of total tax liability.

The individual who is liable to pay advance tax is only required to estimate his current income and pay advance tax thereon without having to submit any estimate or statement of income to the assessing officer.

Further, the assessing officer can also pass an order requiring the individual to pay advance tax on his current income, the amount of advance tax based on the latest assessment. On receipt of notice from the assessing officer, the individual can submit his own estimate of current income and advance tax , if the  tax estimated by the assessing officer is higher than the estimation done by the individual himself.

Thus, in view of above, in case you are liable to pay advance tax, you should immediately estimate your income for the current year and also tax thereon and the taxes before 15^th March 2011.

Taxmantra.com has the expertise in handling individual taxation. We request you to please contact us immediately if you need any help on any tax matter.