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15% of your Advance Tax due by June 15

15% of your Advance Tax due by June 15

Tax & Auditing

GlobalLinker Staff

GlobalLinker Staff

7 days ago — 3 min read

Summary: The Advance Income Tax first instalment deadline is on June 15, 2018. Read further to ascertain if this applies to you, what it means for you and your firm and how to file this tax.

 

The last date to pay the first instalment of Advance Income Tax is June 15.  On its Twitter handle, the Income Tax Department reminded assessees of the upcoming deadline by writing, “Your income tax puts a smile on India’s faces”. 

 

What is Advance Income Tax? Who should pay it?

Advance Tax implies that income tax should be paid in advance instead of lump sum payment at the end of the year. It is also referred to as 'pay as you earn tax'. These payments must be made in installments as per due dates provided by the Income Tax Department.


The people who should file Advance Tax are:

  • Salaried, freelancers and businesses - If your total liability is greater than INR 10,000 in a financial year you have to pay Advance Tax. There is an exemption for senior citizens who are 60 years or older and not running a business.
  • Presumptive Businesses – Taxpayers who opt for presumptive scheme where business income is assumed at 8% of turnover of less than INR 2 crore are exempt from advance tax for FY2017-18.


How to pay

E-payment is the standard mode of payment for advance tax. It is mandatory for all corporates and also assessees whose accounts are required to be audited u/s 44AB of the Income-Tax Act. E-payment is also convenient as a mode of payment for all other taxpayers. According to the Income Tax department, e-payment also ensures correct credit. In the first instalment, taxpayers are liable to provide 15% of Advance Tax and this rise to 45%, 75% and 100% in the next three instalments.

 

A standard deduction of INR 40,000 from taxable income from all tax payers, including pensioners, has been introduced by the Government from this financial year. A taxpayer can claim reimbursement benefits.

When to pay Advance Tax?  

  1. By June 15, 2018 - 15% of payable Advance Tax
  2. By September 15, 2018 - 45% of payable Advance Tax
  3. By December 15, 2018 - 75% of payable Advance Tax
  4. By March 15, 2019 - 100% of payable Advance Tax


Important note

Aadhaar Card must be linked with PAN to file income tax returns.

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GlobalLinker Staff

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