How to pay advance tax?

Wondering

how to pay advance tax online?

Paying advance tax in India is an important obligation for individuals and businesses who have income that is not subject to TDS (Tax Deducted at Source).

What are the Advance Tax Payment Process Online?

Advance tax payments are made in installments during the financial year, and failure to pay them can result in interest penalties under sections 234B and 234C of the Income Tax Act.

Here are the steps to pay advance tax online:

1. To help you with how to pay advance tax in India, you will need to first estimate your total income for the financial year. Calculate the total tax liability based on the applicable income tax slabs and rates. Deduct TDS and other eligible tax credits from the total tax liability to determine the advance tax amount.

2. Advance tax is paid in installments as per the following schedule:

• 15th June: 15% of advance tax liability

• 15th September: 45% of advance tax liability

• 15th December: 75% of advance tax liability

• 15th March: 100% of advance tax liability

1. Go to the official Income Tax Department's website:

   Income Tax e-Filing Portal

   Click on “e-Pay Tax” under the “Quick Links” section or directly go to the NSDL e-Governance website. Choose Challan No./ ITNS 280 for payment of income tax and other direct taxes.

2. Fill in the Required Details:

• Tax Applicable: Select (0021) Income Tax (Other than Companies) for individuals and HUFs or (0020) Income Tax on Companies for corporate taxpayers.

• Type of Payment: Select (100) Advance Tax.

• Mode of Payment: Choose either net banking or debit card.

• PAN: Enter your Permanent Account Number.

• Assessment Year: Select the relevant assessment year (the financial year following the current one).

• Bank Name: Choose the bank through which you will make the payment.

1. After filling in the details, click on “Proceed” and then “Submit to the Bank”. You will be redirected to your bank’s net banking portal. Log into your net banking account and complete the payment.

2. After the payment is successful, a challan counterfoil containing the CIN (Challan Identification Number) will be generated. This acts as proof of payment.

3. Visit a designated bank branch authorised to collect direct taxes. Obtain Challan No./ITNS 280. Fill in the required details (similar to the online process). Submit the filled-in challan along with the tax payment at the bank counter. Collect the stamped counterfoil as proof of payment.

This is all about

how to pay advance tax online.

Read more

Let me guide you on advance tax in a proper way. Advance tax is income tax that is paid in advance during the fiscal year rather than at the end. The tax laws specify that this must be paid at specific times throughout the year. Because it is paid in instalments throughout the fiscal year, advance tax is sometimes known as "pay as you earn" tax. It is critical to specify the correct assessment year when making an advance tax payment online. I will be explaining below how to pay advance tax.

Steps on how to pay advance income tax online:

1) Visit the official government website at 

2) Go to "Services," then "e Payment," and finally "Pay Taxes Online."

3) Select the relevant challan if you wish to pay your income tax ( Advance tax)

4) Fill in the blanks on the form with the correct information. You'll need to provide information such as the right assessment year, address, phone number, email address, bank name, captcha code, and other relevant details.

5) Once you've finished the form, you'll be directed to the bank's Net Banking page. Unpaid income should be double-checked on this page.

6) You will then receive payment information, including your challan number.

7) Once you've made a payment, it's vital that you declare it. To do so, go to the paid tax page and make a new entry.

Due dates for paying advance tax:

1) On or before the 15th of June of the financial year, you must pay 15% of the advance tax.

2) On or before September 15, you must pay 45 percent of the advance tax (less tax previously paid).

3) On or before December 15, you must pay 75 percent of the advance tax (less tax previously paid).

4) On or before March 15, you must pay 100 percent of the advance tax (less tax previously paid).

How to pay advance income tax in India offline?

Advance tax payments are also accepted at bank branches that have been authorised by the IT department to accept advance tax payments. You can pay your taxes in advance using challan 280, which is available at the branches. You should carefully complete the relevant sections of the form and check the applicable boxes. At the specified counter, you can make an advance tax payment by cash or check, accompanied by the form. Ensure that you receive an advance tax payment receipt from the counter. You can pay your taxes in advance at any time.

How to pay advance tax should be clear to you now.