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Advance tax

Jyoti Narang (Kkk) (1202 Points)

09 March 2020

how to calculate the advance tax and it's proportion if a person received msg from dept regarding advance tax payment.

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6 Replies

Mohammed Ghanta Wala (Student CA Final ) (39 Points)
Replied 09 March 2020

Hi Jyoti,

Advance tax liability is the amount of Income-tax computed at the applicable rate of tax on the Total Income for a particular year, as reduced by inter-alia, the amount of taxes deducted at source (TDS). TDS amount could be taken as per the data available in Form 26AS or the Forms issued by the deductors. Kindly note that TDS for the whole year has to be reduced.

In respect of the 4th Installment of Advance Tax payable on or before 15 March 2020, 100% of the advance tax liability as computed above should be paid on or before the aforesaid date.

Regards

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 09 March 2020

Message from department is a general reminder.
You need not worry about it..

You must estimate your annual income to calculate advance tax ..The calculation should be as per tax rates..

2 Like

Jyoti Narang (Kkk) (1202 Points)
Replied 09 March 2020

The income for the year ended 2020 is to be estimated in March so whole of the tax is to be paid in March. 100 per to be paid before 31st March o. estimated income.

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 09 March 2020

If Your tax liability exceeds above 10k then You pay advance tax. Otherwise no need.
Before that payment check out Your TDS amounts in Form 26as...

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 09 March 2020

April 2019 to March 2020 is the FY/previous year for Income tax.

Every quarter you must pay advance tax in installments on estimated income..

100% tax should be paid before 15th March.

Tax paid in advance is called advance tax
Tds also part of advance tax..But there is separate head in challan no 280 to pay advance tax.

If the estimated tax liability is more than 10000/- then only you have to pay advance tax for individuals.Else it is not required.