Taxpayers have only two days left to pay the second installment of advance tax for the financial year 2023-2024. The deadline for the second installment will end on Friday i.e. 15th September. If you miss tax payment, taxpayers will have to pay penalty under sections 234B and 243C. Advance tax is paid within the same financial year in which the income is generated.
This tax is paid in four installments. The first installment of 15 percent of the total tax liability has to be paid by June 15. The second installment of 45 percent will have to be paid by September 15. This also includes the installment paid in June. As of December 15, the liability is 75 percent which includes the installments of June and September. According to the Income Tax Act, the entire tax, which is 100 percent, has to be paid by March 15.
Kind Attention Taxpayers!
The due date for payment of the second instalment of Advance Tax is almost here!
Do remember to pay your second instalment of Advance Tax by 15th September, 2023. pic.twitter.com/rOOzXnWmwe
Who has to pay advance tax
Salaried employees or any kind of businessman whose tax liability for the current financial year after deducting tax deduction at source or tax collection at source is Rs 10,000 or more. They have to pay advance tax. Besides, this tax also has to be paid by those people who have other sources of income besides salary. Which includes income won from rent, capital gains, fixed deposits or lottery.
Who gets advance tax exemption?
Senior citizens (people aged 60 years and above) who do not have any income from business or any profession, there is no need to pay advance tax. Salaried people who have no income other than salary are not required to pay advance tax installments as employers deduct the applicable tax from the monthly salary.
How to make payment
E-payment is mandatory for all corporates and taxpayers whose accounts are required to be audited under Section 44AB of the Income Tax Act, 1961. Section 44AB of the Income Tax Act contains provisions related to tax audit under Income Tax Audit. Tax audit is an inspection of a taxpayer's accounts. There is facility of e-payment for other taxpayers also.
If you miss payment, you will be fined
If there is a default in paying any installment of advance tax, a fine will be imposed on the taxpayers. Section 234C: For each month of delay in payment, interest of 1 percent will be charged on the reduction in the installment amount. This means that if taxpayers pay less than 90 percent of the assessed tax within the deadline, then as per Section 234B, taxpayers will have to pay 1 percent interest for each month in the assessment year. It is very important to note that for the calculation of interest, some part of the month will also be counted as the whole month.September 15 is the last date to deposit the second installment of advance tax. If someone deposits the second installment now. Otherwise, interest of one percent per month will be charged.
Taxpayers have only two days left to pay the second installment of advance tax for the financial year 2023-2024. The deadline for the second installment will end on Friday i.e. 15th September. If you miss tax payment, taxpayers will have to pay penalty under sections 234B and 243C. Advance tax is paid within the same financial year in which the income is generated.
This tax is paid in four installments. The first installment of 15 percent of the total tax liability has to be paid by June 15. The second installment of 45 percent will have to be paid by September 15. This also includes the installment paid in June. As of December 15, the liability is 75 percent which includes the installments of June and September. According to the Income Tax Act, the entire tax, which is 100 percent, has to be paid by March 15.
Who has to pay advance tax
Salaried employees or any kind of businessman whose tax liability for the current financial year after deducting tax deduction at source or tax collection at source is Rs 10,000 or more. They have to pay advance tax. Besides, this tax also has to be paid by those people who have other sources of income besides salary. Which includes income won from rent, capital gains, fixed deposits or lottery.
Who gets advance tax exemption?
Senior citizens (people aged 60 years and above) who do not have any income from business or any profession, there is no need to pay advance tax. Salaried people who have no income other than salary are not required to pay advance tax installments as employers deduct the applicable tax from the monthly salary.
How to make payment
E-payment is mandatory for all corporates and taxpayers whose accounts are required to be audited under Section 44AB of the Income Tax Act, 1961. Section 44AB of the Income Tax Act contains provisions related to tax audit under Income Tax Audit. Tax audit is an inspection of a taxpayer's accounts. There is facility of e-payment for other taxpayers also.
If you miss payment, you will be fined
If there is a default in paying any installment of advance tax, a fine will be imposed on the taxpayers. Section 234C: For each month of delay in payment, interest of 1 percent will be charged on the reduction in the installment amount. This means that if taxpayers pay less than 90 percent of the assessed tax within the deadline, then as per Section 234B, taxpayers will have to pay 1 percent interest for each month in the assessment year. It is very important to note that for the calculation of interest, some part of the month will also be counted as the whole month.
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