3 days ago

Advance Tax Deadline: When Salaried Indians Must Pay More

Advance tax means paying some income tax during the year instead of waiting until the end.

Salaried workers often have their employer pay this tax through monthly TDS deductions.

They may still owe more if they earn money from rent, bank interest, investments, dividends or freelance work.

A separate payment is generally needed when the remaining estimated tax liability is at least Rs 10,000.

By September 15, eligible taxpayers must have paid 45% of their expected yearly advance tax in total.

This includes the 15% that was due in June.

For example, someone expecting to owe Rs 1 lakh and having paid Rs 15,000 in June would pay another Rs 30,000 by September 15.

A qualifying resident senior citizen without business or professional income does not have to pay advance tax.

Key facts

September instalment: Cumulative 45% of estimated annual advance tax liability by September 15.
Minimum liability: Advance tax generally applies when estimated net tax liability is Rs 10,000 or more after accounting for TDS and TCS.
June instalment: 15% cumulatively due on or before June 15.
December instalment: 75% cumulatively due on or before December 15.
March instalment: 100% of estimated advance tax due on or before March 15.
Common additional income: Rent, bank interest, bond interest, dividends, capital gains and freelance or consulting income.
Senior-citizen exemption: A resident senior citizen aged 60 or above without business or professional income is exempt.

news18.com · 3 days ago