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What are the dates at which advance tax needs to be paid?

What is advance tax?

Advance tax, as the name signifies, is income tax that you need to pay in advance, over the course of the relevant financial year. It’s different from self-assessment tax, which is income tax that’s paid after TDS and advance tax has been deducted from your overall tax liability.

Who is liable to pay advance tax?

The following categories of people are liable to pay advance tax.

Freelancers, salaried employees, and businesses: Any freelancer, salaried employee, or business with a tax liability is or exceeds ₹ 10,000 in a financial year is liable to pay advance tax during that FY.

Taxpayers who have opted for presumptive taxation: Both businesses, as well as professionals who have opted for presumptive taxation, are liable to pay advance tax.

Who is exempted from paying advance tax?

Senior citizens (aged 60 years and above), who do not run their own business, are not required to make advance tax payments.

What are the due dates for paying advance tax?

Advance tax payments need to be made four times during the financial year. Here are the due dates for paying advance tax across four installments for individuals and companies whose tax liability is or exceeds ₹ 10,000.

First installment: The first instalment of advance tax needs to be paid on or before 15th June. 15% of the total advance tax is payable in this instalment.

Second installment: The second instalment of advance tax needs to be paid on or before 15th September. In this instalment, 45% of the total advance tax is payable, after deducting the advance tax already paid in the previous instalment.

Third installment: The third instalment of advance tax needs to be paid on or before 15th December. In this instalment, 75% of the total advance tax is payable, after deducting the advance tax already paid in previous instalments.

Fourth installment: The fourth instalment of advance tax needs to be paid on or before 15th March. In this instalment, 100% of the total advance tax is payable, after deducting the advance tax already paid in previous instalments.

Due dates for taxpayers under the presumptive scheme of taxation

The due dates for paying advance tax differs slightly for taxpayers who have opted for presumptive taxation under section 44AD and 44ADA. Businesses and professionals who have opted for this scheme need to pay 100% of advance tax due on or before 15th March. Alternatively, they can also pay all their tax dues before 31st March.

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