Deadline to pay first installment of advance taxes: Who is responsible for paying
Advance tax payment is required of all individuals whose net income tax liability in any given financial year exceeds Rs 10,000. The expected tax amount after TDS (tax deducted at source) is subtracted during the fiscal year is known as net tax liability. You must pay advance tax if, after deducting TDS, your total tax obligation exceeds Rs 10,000.
Paying your income tax in payments throughout the year as opposed to all at once at the end is known as advance tax. Because you pay this tax as you receive money, it is sometimes known as "pay as you earn" tax. The dates for these installments are specified by the tax laws.
June 15, 2025 is the date of the first advance tax installment for this fiscal year.
Who is required to pay taxes in advance?
Advance tax payments are required of all individuals in any financial year who have a net income tax liability of more than Rs 10,000. The expected tax amount less the TDS (tax deducted at source) for the financial year is the net tax liability. These people are required by the Income Tax Act of 1961 to make four distinct quarterly payments in order to avoid paying penal interest. punitive interest.
Not everyone with a net income responsibility in a fiscal year above Rs 10,000 is required to pay advance tax, nevertheless. Certain exemptions are permitted by the income tax legislation.
Who is exempt from paying advance taxes?
According to Section 211 of the Income Tax Act, individuals must pay advance tax in four quarterly installments between June 15 and March 15 of the financial year. Those who choose the presumptive taxation plan, however, have to pay the advance tax by March 15th in one lump sum. Furthermore, senior folks (those 60 years of age or above) who do not get any income from a business or profession are exempt from paying advance tax.
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