Advance payment of tax

 24. Briefly explain the advance payment of tax

.Advance tax is a "pay-as-you-earn" scheme where you pay your income tax in installments throughout the year instead of one large sum at the end. You must pay it if your total tax liability for the financial year exceeds ₹10,000. [1, 2, 3]

How It WorksTo calculate advance tax, estimate your total yearly income and subtract any allowed deductions and taxes already deducted at source (TDS). If the remaining amount is ₹10,000 or more, you make the payment using the ClearTax Advance Tax Guide. [1, 4, 5, 6, 7]

Payment ScheduleYou pay this tax in four specific installments during the financial year:

• June 15: 15% of your total tax
• September 15: 45% of your total tax
• December 15: 75% of your total tax
• March 15: 100% of your total tax [8]

(Note: If you use a presumptive taxation scheme, you pay 100% of the tax in a single installment by March 15). [3, 9]

ExceptionsSenior citizens (60 years or older) who do not have business or professional income are exempt from paying advance tax. [3, 9]

[1] https://www.idfcfirst.bank.in/finfirst-blogs/savings-account/what-is-advance-tax

[2] https://www.scribd.com/document/190918911/Advance-Payment-of-Tax-docx

[3] https://www.canarahsbclife.com/blog/tax-saving/what-is-advance-tax-and-how-is-it-calculated

[4] https://www.sbilife.co.in/blogs/tax/what-is-advance-tax-payment

[5] https://www.indusind.bank.in/iblogs/trends/all-about-advance-tax-payment-in-india/

[6] https://cleartax.in/s/advance-tax

[7] https://www.au.bank.in/blogs/what-is-advance-tax

[8] https://www.youtube.com/watch?v=o8_Gd7dD6nc

[9] https://www.thkjaincollege.ac.in/uploads/1747828010_6thSemE-filing-AdvanceTaxandTaxCalculatorbyAmitMitra-14-4-15Apr2020.pdf