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Advance Tax Payment | How to Pay Advance Tax Online in India | YES BANK

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As per the nature of taxes, you earn your income first and then pay taxes. However, in case of advance taxes, you pay your estimated tax liability before the end of a financial year. That said, you are eligible to pay advance tax only if you receive income from more sources other than your salary. These could include another profession, side-business, capital gain, fixed deposit interest, lottery, rent, etc. Also, advance tax is payable only when the overall tax liability should be more than ₹10,000.

Guide on how to pay advance tax online in India:

How to file for advance tax?
You can file for advance tax by using tax payment challans at specific bank branches. These branches have been authorised by the Income Tax Department and are more than 926 in number. Alternatively, you can submit advance tax online in India through the Income Tax Department’s website or the National Securities Depository Ltd (NSDL).

How to pay advance tax online in India?
The most convenient option to pay your advance taxes is the website of the Income Tax Department. Follow these steps to make an online payment:

  • Visit the official website of the Income Tax Department

  • Opt the right tax payment challan to pay your advance tax. Individuals should use ITNS 280

  • Choose the right code of Advance Tax, which is 100.

  • Fill the required details in the form, including the year of tax assessment, mobile number, address, registered email address, name and address of the bank, and the captcha code

  • Wait until you reach the net banking page of the bank

  • Confirm the amount payable with your calculation on the net banking page

  • Verify the payment details and tax challan number, and make the payment

  • Make an entry in the tax page to report the payment and save the copy of the Challan 280.

Who has to pay advance tax?
The following people have to pay advance taxes:

  • Salaried, freelancers and business firms whose overall tax liability is more than Rs. 10,000 in a financial year. However, people above 60 years of age are exempt for advance tax.

  • Professionals and business taxpayers who opted for presumptive taxation scheme under Section 44AD of the Income Tax Act, 1961. The entire advance tax is to be paid in one instalment on or before 15 March. These taxpayers also have a choice to pay their tax liability by 31 March.

What are the dates for advance tax payment?
Below is the schedule for advance tax payment for corporate and individual taxpayers, except for those covered under Section 44AD.

Due Date

Payable Amount

On or before June 15

15% of advance taxes

On or before September 15

45% of advance tax minus tax paid

On or before December 15

75% of advance tax minus tax paid

On or before March 15

100% of advance tax minus tax paid

 

For taxpayers with Presumptive Taxation facility under section 44AD, the below advance tax payment dates apply:

Due Date

Payable Amount

On or before March 15

100% of advance taxes

 

What happens if the advance tax payment date is missed?

In case you do not pay the advance tax within the first deadline, the IT department will levy a 1% interest on the default amount. This interest charge will be made every month until the outstanding balance is clear. For any deadline missed further, the same interest penalty is applicable.

As a responsible citizen of India, it is advisable for you to understand your tax duties and pay your liabilities for each financial year within the stipulated timelines.

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