Income Tax || Advance Tax
Advance Tax Summary →
Advance tax is the payment of income tax in installments throughout the financial year based on an estimated income. Rather than a lump sum payment at the end of the year, taxpayers are required to remit their tax liabilities progressively, in line with the schedule prescribed by the Income Tax Department.
Who Is Required to Pay Advance Tax :
- Salaried Individuals, Freelancers, and Businesses :
- If your total tax liability exceeds ₹10,000 in a financial year, you are required to pay advance tax.
- Senior Citizens :
- Individuals aged 60 and above who do not have business income are exempt from advance tax.
- However, senior citizens with business income are obligated to pay advance tax.
- Businesses Under Presumptive Taxation (Section 44AD) :
- Taxpayers who have opted for presumptive taxation must pay their entire advance tax by 15th March. They may also settle the tax by 31st March.
- Professionals Under Presumptive Taxation (Section 44ADA) :
- Professionals such as doctors, lawyers, and architects who fall under the presumptive taxation scheme are required to pay their full advance tax by 15th March, with an option to pay by 31st March.
Advance Tax Installment Schedule :
This structured system ensures that taxpayers can manage their obligations incrementally, minimizing the financial burden at the end of the fiscal year and maintaining compliance with tax regulations.
To Enter Advance Tax Details in the Software :
- Navigate to "Transactions → Tax Detail".
- Click on the Advance Tax button.
- Enter the required information, including: Amount, Challan No., Bank Name, Branch Name, BSR Code
- Save the details.
Note:
These details are also available in the Annual Information Statement (AIS). After importing the AIS data, relevant information will be automatically fetched from the Insight-Reporting Portal.
This guide should clarify the steps for data entry and AIS portal import.