Pay 4th Installment of Advance Tax Before this Date; Know Here

The Income Tax Department has issued a reminder to all the taxpayers regarding paying the advance tax. The department ask taxpayer to pay 4th installment of advance tax on or before 15th March 2023.

Taxpayer Liable to Pay Advance Tax

• Any assessee, including salaried employee, whose tax liability for the financial years as reduced by tax deducted/ collected at source is Rs.10000 or more.
• Resident senior citizen not having income from business/ profession is not liable to pay.

Mode of Payment

e-Payment is mandatory for all corporates and also those assessees whose accounts are required to be audited u/s 44AB of the Income Tax Act 1961. e-Payment is convenient for the other taxpayers also as it ensure correct credit.

Due Date of Paying Advance Tax

On or before 15th March 2023

Amount needed to Pay

100% of the Advance Tax Payable

What is Advance Tax?

Advance tax means income tax should be paid in advance instead of lump sum payment at year end. It is also known as pay as you earn tax. These payments have to be made in instalments as per due dates provided by the income tax department.

Who should pay advance tax?

Salaried, freelancers and businesses:

If your total tax burden in a fiscal year is Rs 10,000 or more, you must pay advance tax. All taxpayers, salaried, freelancers, and enterprises, are subject to the advance tax. Elderly citizens aged 60 and up who do not own a business are excused from paying advance tax.

Presumptive income for businesses:

Taxpayers who have chosen the presumptive taxation system under section 44AD must pay the entire amount of their advance tax in one instalment on or before March 15, 2019. They also have the option of paying all of their tax obligations by March 31.

Presumptive income for professionals:

Section 44ADA applies to independent professions such as doctors, lawyers, and architects. They must pay their entire advance tax liability in one installment by March 15th. They can also pay the total sum by March 31.