Advance Tax | Meaning | Applicability | Consequences | Explained in Tamil

Advance Tax Tamil | How to Pay Advance Tax?

We all know that income tax has to be paid on the income earned during the previous year. Meaning, for the income earned during FY 2021-22, income tax has to be paid during the AY 2022-23 on or before the due date for filing the income tax returns. However, there are additional conditions, where the government wants us to pay the income tax in advance on an estimation basis during the previous year itself. Basically, advance tax is just like the TDS, where the income taxes are paid before the completion of the financial year.

Who has to be advance tax?
Every person who is liable to pay income tax above Rs.10,000/- is bound to comply with the provisions of advance tax. However, if a senior citizen above 60 years of age, not having any income from business or profession shall not be liable to pay any advance tax.

When advance tax is to be paid?
Every person who is covered under the ambit of advance tax shall pay the estimated income tax amount in 4 different quarterly installments which is due on 15th Jun, 15th Sep, 15th Dec and 15th Mar.
After paying the first or second or third installment of advance tax, if there is any change in the estimated income, then adjustments shall be made in the quantum of advance tax in the remaining installments and shall pay as per the revised estimation.

How to compute the advance tax?
Tax can be computed based on the prevailing tax rates during the financial year. Whatever tax is deducted or collected at the source can be reduced and the balance alone shall be considered for advance tax payment.

Consequences of non-payment of Advance Tax
Interest at the rate of 1% will be charged at the time of paying the income tax and filing the income tax returns in case you have not paid the advance tax or paid less than 90% of your tax liability.
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