Taxation Services

Advance Tax Payment

Who is liable to pay the Advance Tax?

A taxpayer whose total estate tax liability exceeds Rs 10000 after TDS and TCS is liable to pay the Advance Tax.

Who is not liable to pay the Advance Tax?

A resident who is 60 years of age or senior citizen at the time during the financial year, who is not having any income from business or profession is not liable to pay advance tax.

How to calculate Advance Tax?

Income under 5 heads of incomeXXX
Brought forward losses and allowancesXXX
=Gross Total IncomeXXX
Chapter VI-A DeductionsXXX
=Estimated Total IncomeXXX
Income tax on estimated total incomeXXX
+Surcharge on the above-estimated incomeXXX
=Total Tax payableXXX
Relief under section 89XXX
=Tax liabilityXXX
+2% educational cessXXX
=Total tax liabilityXXX
Relief of tax US 90,90A,91XXX
MAT credit US 115JAAXXX
TDS as shown in Form 16/Form 16A and reflected in Form 26ASXXX
=Advance Tax LiabilityXXX


Important Points

  • A taxpayer having income from business and profession declaring the income under estimated scheme US 44AD or 44ADA is required to deposit the whole amount of advance tax by 15th March of the financial year.
  • The amount deposited by the 31st march of the financial year is treated as the advance tax for the financial year.
  • TDS is treated as an advance tax in case of a salary earned by an employer. (salary people will also pay tax in the shape of TDS)

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