Query on Advance Tax

 Advance tax is calculated on the basis of the best estimate of your income for the current financial year. You have to estimate your income and calculate the tax as per applicable tax rates. Against this tax, you can also claim the tax credits available for you like TDS, TCS, etc. After this the net tax payable is calculated and it has to be paid in instalments. The instalments are decided on the basis of type of the assessee i.e. corporate and non-corporate.

For corporate assessees the due dates and instalments are as below.

15th June - 15%

15th Sept - 45%

15th Dec - 75%

15th Mar - 100%

For non-corporate assessees the instalments and datres are as below:

15th Sept - 30%

15th Dec - 60%

15th Mar - 100%

These are the cumulative limits for payment of advance tax.

It is necessary to estimated the annual income, apply the relavant slab, consider tax credits like TDS etc. and after that if tax liability is exceeding Rs.10000/- then only asseesee is supposed to make advance tax