The answer to your query, “Do I have to make estimated tax payments?” is that if your total tax liability for the financial year exceeds Rs. 10,000 after accounting for TDS and any tax credits, you are required to pay advance tax. This applies to individuals, Hindu Undivided Families (HUFs), firms, and companies.
Do You Have to Make Estimated Tax Payments?
The estimated tax payments are usually made in four installments during the financial year:
15% of the estimated tax by June 15
45% of the estimated tax by September 15
75% of the estimated tax by December 15
100% of the estimated tax by March 15
To determine the estimated tax liability, consider your total expected income, deductions, and applicable tax slabs. The advance tax must be paid if your income and tax liability projections indicate that you will owe tax at the end of the year.
Estimated tax payments can be made through the Income Tax Department's e-filing portal, using net banking, or by visiting designated bank branches. Ensure you use the correct challan (Challan No. ITNS 280) while making the payment.
Failing to pay advance tax can result in interest and penalties under Sections 234B and 234C of the Income Tax Act, which could increase your overall tax liability.
I hope this answers your query, “Am I required to make estimated tax payments?” Hope this helps!
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Do I Have to Make Estimated Tax Payments?
Mantra
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50 days
2024-09-25T11:37:49+00:00 2024-09-30T06:51:05+00:00Comment
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