Advance Payment Of Income Tax

Advance tax is tax payable by individuals who have sources of income other than their salary. This is applicable to rent, capital gains from shares, fixed deposits, lottery winnings, etc. It can be paid online or through certain banks.

Advance tax is also known as ‘Pay as you earn’ scheme. The tax is payable if your tax liability exceeds Rs.10,000 in a financial year. The tax should be paid in the same year in which the income was received.

Who is liable to pay Advance Tax?

The eligibility criteria you will have to fulfil in order to pay advance tax are:

• Your tax liability should be Rs.10,000 and above.
• You should be a salaried or a self-employed individual.
• Income received via capital gains on shares.
• Interest earned on fixed deposits.
• Winnings earned from a lottery.
• Rent or income earned from house property .

How to Pay Advance Tax Online?

The advance tax can be paid online through the online facility offered by the Income Tax department. Listed below are the steps that need to be followed to make a successful online payment for advance tax.

• Go to the official Government www.tin-nsdl.com.
• Click “Services” – epayement: Pay Taxes Online
• Select the right challan to pay your income tax ( Advance tax)
• Fill in the correct details in the form. You’ll have to fill in details such as the right assessment year, address, phone number, email address, bank name, captcha code and other such important details.
• Once you are done filling in the details, you’ll be redirected to the bank’s Net Banking page. The income to be paid should be rechecked in this page.
• Next, you’ll get details of your payment including your challan number.
• It is important to report your payment after you’ve made the payment. You can do so by adding an additional entry under the paid tax page.