Advance tax refers to paying a part of your taxes before the end of the financial year. It is the income tax if your liability is more than Rs.10,000 in a financial year. It is basically an estimation of total taxable income and payment of the income tax in equal parts throughout the year, rather than paying a lump sum amount at the end of the year. Advance tax should be paid in the year in which the income is received.
Advance tax is applicable when an individual has sources of income other than the salary (like gains on shares, winning a lottery, etc.). An individual who is liable to pay advance tax is required to estimate the current income and pay the advance tax without having to submit any statement of income to the authorities.
Advance tax payment dates
For the financial year 2018-19 (individual and corporate taxpayers)
| Due Date | Payable Advance Tax |
|---|---|
| On or before 15th June | 15% of advance tax |
| On or before 15th September | 45% of advance tax |
| On or before 15th December | 75% of advance tax |
| On or before 15th March | 100% of advance tax |
For taxpayers who have opted for Presumptive Taxation Scheme – Business Income
| Due Date | Payable Advance Tax |
|---|---|
| By 31st March | 100% of advance tax |
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