Advance Payment Of Tax

Advance Payment Of Tax

Advance payment of tax is paid by Assesee himself or herself. This tax is paid on the current year’s income in the same year. In fact, it ... 7:13 AM

Advance payment of tax is paid by Assesee himself or herself. This tax is paid on the current year’s income in the same year. In fact, it is paid as advance and it is called Advance payment of Tax.

Advance payment of Tax is not charged on those Assesee  whose income are comes under “Income from Salary”. Under any income where TDS is already deduct, Advance payment of tax is not chargeable.

Conditions where Advance Payment of Tax is not compulsory

1)      Any Assesee or person who does not have any income from any business or profession.

2)      If the age of the Assesee  is 60 years or more than 60 years than they are not need to pay advanced payment of tax.

3)      Income from Other Sources like income from dividend or lottery. Here TDS is deducting. These are casual incomes therefore advanced payment of tax is not charged.

Who will pay Advance tax

The person whose income are taxable or liable to pay tax as per the Finance Act and the amount of tax is rupees 10,000 or exceeds rupees 10,000 than advance payment of tax is paid by using current year income.

Who will calculate the amount of advance tax

1)      Self Assessment : Assesee can himself  or herself calculate the amount of tax by applying current Finance Act.

2)      If asseseement would be made by Assessing Officer than Advance tax would be calculate just before the current year or any other previous year’s income whichever is more.