Advance Tax

Advance tax is an estimated amount of income tax paid in instalments throughout the financial year, instead of paying the entire amount at the end of the year. It is primarily applicable to individuals and Hindu Undivided Families (HUFs) who have income from sources other than salary, such as business or professional income, rental income, or capital gains.

Applications for Advance Tax Payment

Advance tax can be paid online using the Income Tax Department’s (ITD) e-Filing Portal through Income Tax Credentials of the entity.

Eligibility for Advance Tax Payment

Individuals and HUFs with income from sources other than salary are generally required to pay advance tax if their estimated tax liability for the financial year exceeds Rs. 10,000. Senior Citizens as defined by Income Tax Act are also exempt from the purview of Advance tax.

Documents Needed for Advance Tax Calculation

To calculate advance tax accurately, individuals typically need the following documents:

• Income estimates from various sources (e.g., business or professional income, rental income, capital gains)
• Proof of income (e.g., profit and loss statements, rental receipts, capital gains statements)
• Details of eligible deductions and exemptions

Tax rates applicable for the assessment year