Liability of advance tax

@ Manpreet Kaur

If the income tax liability of any taxpayer is more than Rs. 10000/- in a financial year, then he is liable to pay such tax in installments during the year itself rather than paying this tax at the end of the year.

Advance tax is liable to be paid at the time of income is earned i.e., during the year rather than paying this tax at the end of the year.

Thanks & Regards

Piyush Tanwar

CA Finalist & Internal Auditor

Mobile - 9717468521

Hi,

Yes, advance tax is applicable for all type of person irrespective of nature of their income i.e. whether salary income or otherwise as per section 208 of the income tax act. The only exception to this rule is for senior citizens who doesn't have income from business or profession.

In case of salary, employer (having TAN number) is primarily responsible for TDS deduction from payment of salary to the employees on the monthly basis calculated on the average basis irrespective of total tax payable for each employee (i.e. less than or greater than Rs.10000). Non deduction of TDS would attract penal consequences to employer. Therefore, if employer is TAN registered, employee would be free from advance tax compliance as their total tax liability will be deducted from their salary. However, please note that employee is liable to pay advance tax on the income other than salary income, if any earned during the respective financial year.

Employer NOT HAVING TAN number would not deduct the TDS from salary to the employees Therefore, employee having total tax payable exceeding Rs.10000/- has to comply with the provisions of advance tax and pay the same in 4 installments as below :

15% of the net tax payable - by 15th June of the FY

45% of the net tax payable - by 15th September of the FY

75% of the net tax payable - by 15th December of the FY

100% of the net tax payable - by 15th March of the FY

Hope this resolves your query.

Thanks and Regards,

Manoj

If the tax liability of a tax assesse exceeds Rs.10000, then the assesse shall be liable to pay advance tax in four instalments i.e,

15% of the net tax payable - by 15th June of the FY

45% of the net tax payable - by 15th September of the FY

75% of the net tax payable - by 15th December of the FY

100% of the net tax payable - by 15th March of the FY 

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