Advance Tax Installment for FY 2021-22: Taxzone

Last or you can say 4th Advance Tax Installment is due on 15th March 2022 for FY 2021-22 and till this date, Taxpayers have to pay 100% of their Advance Tax Liability. Failure to make premature payments may attract penal interest.

In this article, we will cover all the provisions you need to know about advance tax:

Who needs to pay advance tax installment?

If the tax amount for the particular financial year exceeds Rs.10,000/-, then the provisions of advance tax are applicable to you. For computing advance tax, one needs to include all the income earned till the date of computation of advance tax as well as these incomes which are certain to the individual as income during the financial year, to calculate and pay the advance. is considered on an estimated basis. Tax.

However, there are some exemptions which are as follows:

a. Senior citizens are exempted from paying advance tax subject to the following two conditions:

1. they must be a resident individual, and
2. they should have no income business and profession,

Therefore, any person who is a senior citizen i.e. a person of 60 years of age or above, and fulfills both the above-mentioned conditions, need not pay advance tax installments.

b. Salaried employee is exempted from paying advance tax subject to the following two conditions:

1. no other source of income, and
2. Employers deduct tax at source before paying the salary and deposit it with the Income Tax Department.

But, if the assessee also has income from other sources such as rent from property or interest from capital gains or bank deposits, etc., which are not reported to the employer, the assessee is required to pay the total tax liability if the income 10,000 per annum from other sources.

What is the due date for payment of advance tax?

The following is the due date for payment of advance tax for the financial year 2021-22 (AY 2022-23) for both corporate and non-corporate type of assessees:

The percentage mentioned in the third column is the percentage of tax liability.

Business or business assessees, whose income is under presumptive income scheme under section 44AD or 44ADA, will also have to pay the full amount of advance tax by 15th March of the year. However, the relaxation here is that any amount deposited till 31st March of the financial year is also treated as advance tax for that financial year.

Procedure to pay advance tax?

1. online process
2. Login to Income Tax website”www.incometax.gov.in,
3. Click on “e-pay tax” tab
4. Now, you will be redirected to NSDL website
5. To pay advance tax, select “Invoice 280”
6. Fill the required details
7. Select “NetBanking” option to make online payment
8. After successful payment, a challan will be displayed containing the information number and payment details.
9. Invoice is proof of payment that has been made
10. offline process

The assessee has to visit the designated bank branch and fill the challan form as per challan 280 format and then pay the taxes.

Consequences of late payment of advance tax?

The assessee is liable to pay the advance tax mentioned in the above table in four installments before the end of the financial year. If the assessee fails to pay the advance tax as per the table mentioned above, the assessee will have to pay interest on the late payment. Interest payable can be rounded off to the nearest hundreds.

This interest on late payment of advance tax comes under two sections:

1. Section 234C
2. Section 234B

After payment, if there is any change in the income computed while paying advance tax, you can update the advance tax revenue in the next installments as per the new liability estimate.

If you are liable to pay advance tax and have not paid it yet, do it before the last date. Please note that the last date for paying the 4th installment of Advance Tax is 15-03-2022. You can also contact us to do your calculations Advance Tax Liability and Related Consultancy,