New Delhi: The last date for payment of the last (Fourth) instalment of Advance Tax is on (March 15, 2023) for Indian taxpayers. If, for any case, they fail to pay the required amount on time, they have to bear the specified penalties under 234B and 243C of the Income Tax Act. The income tax department has urged people to pay Advanced Tax via e-Payment for convenience. It shared the infographic, warning the taxpayers who opted for Advanced tax to pay the last (foruth) instalment on time unless they will have to face penalties.
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Each instalment is usally paid at the end of the quarter, which is of three months. Hence, a taxpayer will have to pay the required amount of tax at every quarter unlike the lump-sum payment where he/she gives the entire sum. March 15, 2023 is the last date specified by the income tax deparment for the fourth instalment of Advanced Tax.
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What is Advanced Tax?
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A tax payer who wishes to pay his/her income tax in instalments and advance than lump-sum payment at the year-end can opt Advanced Tax option. It was also known as earn tax and is paid in instalments as per the due dates decided by the income tax deparment.
These taxpayers are liable to pay Advanced Tax
Any assessee, including salaried employee, whose tax liability for the financial year as reduced by tax deducted/collected at source is Rs 10,000/- or more is liable to pay Advanced Tax.
However, Residents senior citizens not having income from business/profession is not liable to pay.
What is the Mode of Payment?
e-Payment is mandatory for all corporate and also those assessees whose accounts are required to be audited under section of 44AB of the income tax act, 1961.
e-Payment is convenient for other taxpayers also as it ensures correct credit.
