Advance Tax Cost Deadline, Final Day to File Advance Earnings Tax Immediately: Are you but to pay the 4th and last instalment of your advance tax to the Earnings Tax Division? If sure, then hurry up as you must pay the ultimate instalment of this monetary yr’s advance tax newest by March 15, 2021, or be ready to face penalty.
The Earnings Tax Division has additionally mentioned, “Your Advance Tax performs a pivotal position in shaping the event story of the nation. Allow us to, collectively, speed up the nation constructing course of. Do keep in mind to pay the fourth instalment of your Advance Tax on or earlier than fifteenth March, 2021.”
It could be famous that non/quick cost of advance tax is liable to penal curiosity. Due to this fact, if you don’t want to pay any penal curiosity or face any penalty as per the Earnings Tax Act, then you should pay the remaining advance tax as we speak.
What’s Advance Tax?
Along with Tax Deducted at Supply (TDS), advance tax is a mechanism by means of which the federal government collects earnings tax income from the involved taxpayers on an everyday (quarterly) foundation. This mechanism is used significantly in case of these incomes which aren’t topic to TDS or the place the speed of Tax Deducted at Supply is lower than the speed at which one’s earnings is taxed.
Who must pay Advance Tax?
Aside from companies, even people – together with salaried workers – whose tax legal responsibility is Rs 10,000 or extra even after deducting TDS/TCS are liable to pay advance tax.
How is Advance Tax Calculated & Paid?
Advance Tax is calculated on the premise of a taxpayer’s anticipated tax legal responsibility of the yr, and is paid in instalments as talked about beneath:
(a) In case of all assessees (apart from the eligible assessees as referred to in part 44AD and 44ADA) :
i) As much as 15% – On or earlier than June 15
ii) As much as 45% – On or earlier than September 15
iii) As much as 75% – On or earlier than December 15
iv) As much as 100% –On or earlier than March 15
b) In case of eligible assessee as referred to in part 44AD and 44ADA:
100% – On or earlier than March 15
It could, nevertheless, be famous that any tax paid on or earlier than March 31 can even be handled as advance tax paid throughout the identical monetary yr, and the deposit of this tax is made by means of challan ITNS 280 by ticking the related column, i.e., Advance Tax.
If a taxpayer is liable to pay advance tax, however fails to pay the required tax in the course of the yr or pays solely part of it, then he/she is liable to pay penal curiosity for default of advance tax.
Tax specialists say that the fourth and last installment of advance tax is required to be deposited on or earlier than fifteenth March, 2021 for the monetary yr 2020-21. The advance tax is to be paid @ 100% of the entire estimated tax legal responsibility as diminished by the quantity of tax deducted at supply and advance tax already paid. Failure to pay the advance tax would entice curiosity @ 1% p.m. In case of failure, the Earnings Tax Division can cross an order requiring assessee to pay advance tax and may connect one’s checking account to get well the identical.