Deadline for depositing Advance Tax is coming close, know how much penalty has to be paid for not filling tax in time.
The March 15 deadline for filing advance tax is approaching. Advance tax is payable in the event of tax liability of more than Rs 10,000 during any financial year. Advance tax has to be deposited in four installments in a financial year.
The March 15 deadline for filing advance tax is approaching. Advance tax is payable in the event of tax liability of more than Rs 10,000 during any financial year. Advance tax has to be deposited in four installments in a financial year. March 15 is the last date for depositing the fourth installment of advance tax in the current financial year. Tax and investment expert Balwant Jain says that any person should calculate tax liability on the basis of their income in time. He said that taxpayers should calculate their tax liability during any financial year according to their current rate of income and income tax. After this, if TDS has been paid, then it should be reduced and then the tax liability should be calculated.
Jain said that after paying all types of TDS and TCS, if your net tax liability is more than Rs 10,000 in a financial year, then you will need to pay advance tax.
He said that according to the provisions of income tax law, advance tax has to be paid in the ratio of 15%, 30%, 30% and 25% respectively on 15 June, 15 September, 15 December and 15 March.
Jain said that apart from those doing business, salaried people also have to pay advance tax if the tax liability on interest or income earned from capital gains or other sources is more than Rs 10,000.
He clarified the rules related to payment and delay in advance tax:
If a person does not deposit advance tax by March 15 or has deposited less tax, he can pay it by March 31 of the same financial year. This payment will also be considered as advance tax. But from March 15 to March 31, interest is payable at the rate of one percent on the payment of advance tax.
In case of any quarterly installment, if the payment is low or the payment defaults, it can be paid with the next installment but for this, one percent interest will have to be paid per month.
For example, if your tax liability becomes two lakh rupees, then in the first installment you will have to pay 30 thousand rupees by June 15 as 15 percent. If you do not do this and submit advance tax on June 16, then you will have to pay interest at the rate of one percent from April to June. This means that you will have to pay interest of Rs 900 even if it is delayed by one day. In such a situation, if you want to avoid such a huge interest, then pay your advance tax on time.