Advance Tax payment due date for FY 2022-23/AY 2023-24

Advance Tax payment due date for FY 2022-23/AY 2023-24 This Article discusses provisions related to the payment of Advance Tax. Please note that the due date of Payment of the installment of Advance Tax for the 2nd Quarter of FY 2022-23/AY 2023-24 is 15th Sep 2022. What is the meaning of Advance Tax? Usually, tax is paid when income is self-assessed i.e. ITR is filed. ITR filing for a Financial Year Happens after the end of the Financial Year, i.e. in the Assessment Year. Advance Tax means paying Tax for a Particular Financial Year in that FY in which income is earned itself.  What are the Due Dates for Payment of Advance Tax? Advance Tax Due Dates for Individual and Corporate Tax Payers:

Due Date	Advance Tax Liability
On or Before 15th June	15% of Tax
On or Before 15th September	45% of Tax
On or Before 15th December	75% of Tax
On or Before 15th March	100% of Tax

Advance Tax Due Dates for Individual Taxpayers who have opted for Presumptive Taxation: 100% of Tax Should be Paid on or before 31st March 2021. What are the Legal Provisions in Income Tax Act related to Advance Tax?

Section	Brief Description
208	Conditions of liability to pay advance tax
209	Computation of advance tax
210	Payment of advance tax by the assessee of his own accord or in pursuance of an order of Assessing Officer
211	Installments of advance tax and due dates

Is there any Exemption From Payment of Advance tax?

• A taxpayer having Tax Liability of up to Rs. 10000 is not required to pay advance Tax.
• Senior Citizens [Having to Age of more than 60 Year] not having income under the head Profits and gains from business [PGBP] are not required to pay advance tax.
• Also usually in the case of salaried employees, TDS is deducted by the employer on their salary income. In such cases, they are also not required to pay Advance Tax.
• Provisions of Advance Tax are applicable on Non-Residents having Income Accrue or arise in India.

How to Calculate Advance Tax Liability?

• Advance Tax liability is calculated on estimated Taxable Income as per Income Tax Act.
• While Calculating the estimated Taxable Income as per Income Tax Act only Specific Deductions as per Income Tax Act are allowed.
  • For Example in the case of a company, while calculating Advance Tax Depreciation as per companies act will be disallowed, and as per Income Tax Act will be allowed.
  • Similarly, Deduction under Chapter VIA is allowable while computing liability of advance tax.

Particulars	Amount
Income from salary	XXX
Income from house property	XXX
Profits and gains of business or profession	XXX
Capital gains	XXX
Income from other sources	XXX
Gross Total Income	XXX
Less: Deductions under Chapter VI-A	(XXX)
Total Taxable Income	XXX
Tax on total income at applicable rates	XXX
Less: Rebate under section 87A	(XXX)
tax liability After Rebate	XXX
Add: Surcharge	XXX
tax liability After Surcharge	XXX
Add:Education cess @ 3%	XXX
Tax liability for the year	XXX
Less: TDS	(XXX)
Tax payable	XXX
Advance Tax	(Above Tax) x (specified percentage)

The credit of TDS deducted can be taken while calculating Advance Tax Liability. How to make Payment of Advance Tax?

• Electronic Payment of Advance Tax can be made Online.
• Visit https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
• Choose CHALLAN NO./ITNS 280 for Payment of Advance Tax.

Question: What are the penal provisions attracted, if advance tax is not paid/ paid less or is not paid within the prescribed time? Answer: If the Income Tax is not payable as per the provisions, Interest is liable to be paid for late payment of tax as follows: 1. Interest u/s 234C Interest @ 1% p.m. for a period of 3 months, will be payable for every deferment, except for the last installment of 15th March where it will be 1% for one month is payable if the tax is not paid as per the due dates i.e. for Deferment in Installments of Advance Tax 2. Interest u/s 234B Interest @ 1%p.m. from 1st day of assessment year upto the date of deposit tax & interest is payable if 90% of the assessed tax is not paid or is short paid before the end of the financial year i.e. for Default in payment of Advance Tax. Question: Can the Income-tax department issue notice to the assessee for payment of Advance Tax? Answer: Yes. Assessing Officer may pass an order u/s 210(3) of the Income Tax Act 1961 or amended order u/s 210(4) and issue a notice of demand u/s 156 requiring the assessee to pay advance tax.