Pay your advance tax by March 15
If you want to avoid payment of interest to the I-T Deptt on your income, then pay your advance tax by March 15, 2024
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Mumbai: If you want to avoid payment of interest to the I-T Deptt on your income, then pay your advance tax by March 15.
In case you miss the deadline, be ready to pay additional amount to the department in the form of interest. Advance tax system is very old one which came into being from the initiation of Income Tax Act.
However, it has been facilitating the taxpayers. The taxpayers have to pay the advance tax in four instalments which include June 15, September 15, December 15 and finally on March 15 every year.
Secondly, wherever the advance tax already paid, the interest is not charged by the income tax department, which comes as a great rescue to the assesse. And, it is very needed to be done by partnership firms, societies, trusts wherever individuals. Even it is useful for the salaried persons too.
Advance tax is a procedure through which record of the assessee is maintained online. Suppose, last year he had paid the advance tax, but this year he missed the deadline, then in that case he will receive a message from the I-T department through mail or SMS to alert them.
Talking to Bizz Buzz, M Srinivasa Rao, president, All India Federation of Taxpayers (AIFTP), says, “The advance tax has got a major chunk of share in the direct taxes. More than 60 per cent of shares of revenue comes from the advance tax for the I-T Department. If you miss the deadline of advance tax and suppose you pay on April 1, then you will have to pay interest on the same ranging from 12 per cent to a higher level.”
As per an estimate, 1.5 crore taxpayers across the country have been paying advance tax. However, the number is likely to have crossed 2 crore now.
Abhishek Aneja, a Delhi-based tax expert, says, “Many taxpayers fail to correctly calculate and deposit Advance Tax within due time and at the time of filing the ITR they may have to pay a substantial amount as Interest on shortfall of Advance Tax.”
Taxpayers can save this additional liability of Interest just by being aware of the due dates. If they find it difficult to calculate the amount of advance tax instalment they can take the help of their Tax advisor, he said.
