2014-09-25 00:00:00Money & FinanceEnglishhttps://quickbooks.intuit.com/in/resources/in_qrc/uploads/2017/05/advance-tax.jpghttps://quickbooks.intuit.com/in/resources/money-finance/how-to-file-advance-tax/How to File Advance Tax

How to File Advance Tax

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Taxation and filing of taxes for your Small Business can be confusing and you may have heard of and wondered if your startup needed to pay advance tax. In this post, we will examine: • What is Advance Tax? • Who is Eligible to Pay Advance Tax? • Why Pay Advance Tax? • How to File Advance Tax What is Advance Tax? As the name suggests, Advance Tax is tax paid by an individual of company in advance. Under advance tax or the Pay as You Earn Scheme, you as the tax payer will have to estimate your expected income and pay tax accordingly. Advance Tax is paid in the same financial year as the income earned. Who is eligible to pay Advance Tax? Individuals whose tax amount is more than 10,000 INR a year are liable to file Advance Tax. There are 4 dates that are important for those paying advance tax, and the percentage of taxes are recommended as follows: • 15th June: 15% of Advance Tax • 15th September: 30% of Advance Tax • 15th December: 30% of Advance Tax • 15th March: 25% of Advance Tax Failures to follow these deadline and dates can lead to penalties from the Tax Department. Why Pay Advance Tax? The payment of Advance Tax was put forth by the government to streamline and speed up the tax process. With the Advance Tax system, you will be able to pay as you earn and avoid the issues of shortage of time or funds by the final tax date. How to File Advance Tax Advance Tax can be paid either by filling out the following Tax Challan CHALLAN NO./ITNS 280 and depositing it at designated bank branches recognized by the Income Tax Department or you can file it online by filling up this formon the Indian Online Tax Website.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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