Advance Tax payment due date for Financial Year 2020-21 Q1 is 15th June 2020. Know online steps for payment of Advance Tax
Advance tax means tax paid in the financial year immediately preceding the assessment year. Advance tax is calculated by estimating the current year income then applying tax. TDS/ TCS and MAT (Minimum Alternate Tax) credit shall be deducted to arrive at Advance Tax liability. Non-payment of advance tax will lead to levy of interest as per section 234B and 234C of the Income Tax Act.
Who are liable for Advance tax payment under Income tax act?
The following persons are liable for payment of Advance tax:
1. Where the total advance tax liability for the year exceeds Rs. 10,000 than the assesse is liable to pay advance tax.
2. Person who have opted for presumptive taxation scheme are liable for advance tax in one instalment on or before 15th March of the previous year. They also have an option to pay all of their tax dues by 31 March.
3. An NRI, who has an income accruing in India in excess of Rs 10,000, is liable for payment of advance tax.
Note: Resident senior citizens not having income from business or profession are not liable for advance tax.
What are the due date of Advance tax payment?
The below is the due date of Advance Tax and percentage amount of advance tax to be paid by the assesse for FY 2020-21:
|Due dates||Amount of Advance tax|
|Up to 15th June of the previous year||Up to 15% of Advance tax liability|
|Up to 15th September of the previous year||Up to 45% of Advance tax liability|
|Up to 15th December of the previous year||Up to 75% of Advance tax liability|
|Up to 31st March of the previous year||Up to 100% of Advance tax liability|
Understand the concept with the help of example
For Instance, Mr. X is a Resident Individual of 50 years of age has estimated Total income of Rs. 5, 10,000 for FY 2020-21. Assume that Mr. X has opted for Old Income Tax method as per section 115BAC.
Let us determine whether Mr. X is liable for advance tax payment
Calculation of tax liability of Mr. X
|Slab of Income||Amount of Tax|
|0- 2.5 lakh||–|
|2.5 – 5 Lakh||12,500|
|5- 10 lakh||2,000|
|4% Health and education cess||580|
|Total tax liability||15,080|
As tax liability of Mr. X is more than Rs. 10000 he is liable for Advance tax payment. He has to Rs. 2262 (15% of Rs. 15,080) on or before 15th June 2020.
Procedure Steps for payment of Advance tax online:
Below is the steps for payment of Advance Tax online:
Step 1: Go to site https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Select challan no CHALLAN NO./ITNS 280
Step 2: Filing of Challan no. 280
- Select the tax applicable i.e (0020) Corporation Tax for Companies paying advance Tax and (0021) Income Tax for person other than Companies)
- Select type of payment as (100) ADVANCE TAX
- Mode of Payment: Select the Bank through which the Tax payment is to be made also select whether payment is to be made through net Banking or Debit Card
- Enter your PAN number and Select Assessment year
- Enter your address and mobile no
Now, enter captcha code and click on “proceed” it will display the name of the entity and Financial Year
Step 3: Final Submission
- Now Select “I agree” Check box and Click on “Submit to Bank” it will take you to your bank page and you can enter your login ID and password and pay tax
- Once paid you will be redirected to the BSR Code and challan details
- Download/ Save the Challan Copy