 Also known as ‘pay as you earn’

 Because the assessee pays the tax on the

income in the same year itself
 It refers to paying a part of your yearly taxes in
advance
 It is the income tax payable if your tax liability
exceeds Rs 10000 in the financial year
 It should be paid in the year in which the
income is received
 Individuals who are at least 60 years old ,
and do not run any business of any kinds are
exempt for paying Advance Tax.
 An assessee who opted for the presumptive
business scheme where the income of the
business is assumed at 8% of turn over of
less than 2 crores in INR
 For companies
 On / before 15th June – not less than 15% of advance tax
 On/before 15th September – not less than 45% of
advance tax
 On / before 15th December – not less than75% of
advance tax
 On / before 15th march – 100% of the advance tax less
 amount already paid
 On / before 15th September – not less than 30% of
advance tax
 On / before 15th December –not less than 60% of
advance tax
 On/before 15th March – 100% of the advance tax less
amount already paid
 If tax is not paid or paid less than the stipulated tax
you would be penalised and would have to Pay extra
under sections 234A ,234B, 234C so there is no
escaping from tax
 Interest -1% simple interest /month on the defaulted
amount for the 3 months
 The interest penalty would continue up to the next
deadline
 After the last deadline (15March ) the tax is not paid
then the 1% would be on the defaulted amount for a
month until the tax is fully paid
 Determine the income - other than salary and any
ongoing agreement that might pay out later
 Minus the expenses – deduct expenses from income
like rent of the work place , travel expense , internet
and phone costs etc
 Total the income – add up other income that you
might receive in the form of rent , interest income etc.
deduct the TDS deducted from your salaried income
 Total advance tax – if the tax due exceed Rs 10,000
then you will have to pay advance tax
 Companies – it is mandatory to pay tax through
electronic payment mode( by using internet banking
facilities of authorised bank)
 Individuals – electronic mode
 Other taxpayers – either electronically or by depositing
the challan at the receiving bank
 If the tax paid is higher than the required amount he /
she will receive the excess amount as a refund
 If the amount paid is more than 10% of tax liability
then the y will get an interest of 6% per annum on the
excess amount paid