13 Jun 2018, 12:18 — 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:
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?
Aadhaar Card must be linked with PAN to file income tax returns.
Posted byGlobalLinker Staff
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