Advance Income Tax Payment

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Rahul Singh (Querist)
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27 January 2021 Hi, maybe this query is too basic but I am not sure how things work. Apologies in advance!

Basically my services business (proprietorship) has turnover of around 1 crore, and I pay Advance Tax. So want to know the money I pay Advance Tax from, is that also taxable? or any money that is contributed to tax is not calculated that way?

Thanks you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 January 2021 Advance tax is paid out of profit earned. Tax is paid on profit earned.

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Rahul Singh

Rahul Singh (Querist)
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27 January 2021 Thanks Sir for reply. So basically if I make total profit of 1 crore in current financial year (2020-2021) then from that 1 crore I have to pay advance tax as below right?

Q1 15% (rs 410625)
Q2 45% (rs 821250)
Q3 75% (rs 821250)
Q4 100% (rs 684375)

Again to confirm, above Advance Tax Payments are tax free amounts.

Am I doing everything correct?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 January 2021 Yes, it's confirmed. You are doing it right.