Any person whose tax liability during the year exceeds Rs. 10,000/- is required to pay Advance Tax to the Central Govt.
From FY 2016-17 i.e AY 2017-18 onwards all taxpayers with tax are required to pay advance tax in four instalments starting from 15th June.
Earlier only corporate assesses paid advance tax in four instalments and non-corporate assesses paid advance tax in three instalments only but from FY 2016-17/AY 2017-18 onwards all taxpayers including Individuals, HUF, partnership firms, LLPs, companies etc. are required to pay advance tax in 4 instalments starting from 15th June of the Financial Year.
The due dates for payment of advance tax for all persons except persons covered under section 44AD are:
| Due Date | Instalment Payable |
|---|---|
| On or before 15th Jun of the Financial Year | Not less than 15% of advance tax. |
| On or before 15th Sep of the Financial Year | Not less than 45% of advance tax as reduced by the amount paid in the earlier instalment. |
| On or before 15th Dec of the Financial Year | Not less than 75% of advance tax as reduced by the amount paid in the earlier instalments. |
| On or before 15th Mar of the Financial Year | The whole amount (100%) of advance tax as reduced by the amount paid in the earlier instalments. |
From FY 2016-17/AY 2017-18 onwards the persons covered u/s 44AD are also required to pay 100 % advance tax in one instalment on or before 15th March of the financial year.
Advance Tax Liability for persons covered under section 44AD of the I.T. Act 1961
| Due Date | Instalment Payable |
|---|---|
| On or before 15th Jun | – |
| On or before 15th Sep | – |
| On or before 15th Dec | – |
| On or before 15th Mar | The whole amount (100%) of advance tax as reduced by the amount paid in the earlier instalments (if any). |
- Senior citizens above the age of 60 years and who do not have business income are not required to pay advance tax.
- Advance Tax provisions are applicable to both residents as well as non-residents.
- Advance Tax is to be paid through challan ITNS 280 through online as well as offline mode.
- Failure to pay advance tax will subject the assesses to interest u/s 234B and 234C of the Income Tax Act’1961.
- Advance tax paid on or before 31st March shall also be treated as advance tax paid for all purposes.