Advance tax means income tax should be paid in advance instead of lump sum payment at year end. Advance Tax shall be paid according to section 208 of the Income Tax Act 1961.

1.Minimum tax liability- Every person whose estimated tax liability for the year is more than or equal to Rs. 10,000 is liable to pay advance tax.

2. Person not liable to pay advance tax- senior citizens who are above the age of 60, not having any income from business or profession.

3. Due Date for payment of Advance tax-

The due dates for payment of different instalments of advance tax are as follows:

Note 1: Any tax paid till 31st March will be treated as advance tax.
Note 2: If the last day for payment of any instalment of advance tax is a day on which the banks are closed, then the taxpayer should pay the advance tax on the immediately following working day.

4. Mode of payment of advance tax

For Company- Through the electronic payment mode using the internet banking facility of the authorised banks.

For other than comapny-

i) Audit Case- Through the electronic payment mode using the internet banking facility of the authorised banks.

ii) Non- Audit Case-

a) Through the electronic payment mode using the internet banking facility of the authorised banks.

b) Through Physical mode by depositing the challan at the receiving bank.

5. Calculation of Advance Tax

The taxpayer who is liable to pay advance tax is required to estimate his current income and pay advance tax on his own account. In such a case, he is not required to submit any estimate or statement of income to the tax authorities.

After making payment of first or second or third instalment of advance tax (as the case may be), if there is a change in the tax liability, then the taxpayer can revise the quantum of advance tax in the remaining instalment(s) and pay the tax as per revised estimates.

Tax can be computed on the current income (estimated by the taxpayer) at the rates in force during the financial year. From the tax so computed, tax deducted or collected at source will be deducted and the balance tax payable will be used to compute the advance tax liability. Also, relief of tax allowed under section 90 or section 90A or any deduction under section 91 or any tax credit allowed to be set off as per section 115JAA or section 115JD shall also be deducted while computing the advance tax liability.

6. Steps to pay Online Tax

Step 1- Go to website http://www.tin-nsdl.com.

Step 2- Go to the Services tab. The select e-payment: Pay Taxes Online.

Step 3- Proceed with the Challan No./ITNS 280.

Step 4- Enter PAN and other mandatory challan details like accounting head under which payment is made, address of the tax payer and the bank through which payment is to be made (Net Banking or debit Card) etc.

Step 5- On submission of data entered, a confirmation screen will be displayed. If PAN is valid as per the ITD PAN master, then the full name of the taxpayer as per the master will be displayed on the confirmation screen.

Step 6- On confirmation of the data so entered, the taxpayer will be directed to the net-banking site of the bank or Debit card payment gateway.

Step 7- The taxpayer has to login to the net-banking site or entered the card details as required. Then fill the amount of tax in appropriate field and proceed.

Step 8- On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

Download the challan for offline payment with help of following link: