Advance Tax is the estimated calculation of Income-tax which is quarterly paid. Advance tax is paid for the income from other sources which required to calculated by the taxpayer by himself.
Employer use to deduct TDS from the salary paid to the employee, there is no question of advance tax from the salary income, so no worries about income tax challan 280.
Table of Contents
Due date of paying advance tax
Advance tax is paid quarterly basis in the prescribed percentage of the total tax amount:
Also Read: What is Fees u/s 234F? (Penalty for Late Filing Income Tax Return)
| Due Date | Advance tax Payable |
| On or before 15th June | 15% of estimated Advance Tax |
| On or before 15th September | 45% of estimated Advance Tax |
| On or before 15th December | 75% of estimated Advance Tax |
| On or before 15th March | 100% of estimated Advance Tax |
How Is Advance Tax calculated?
Advance tax is calculated from your current income after deduction all exemption u/s 80.
Income received in the previous financial year can be taken as the taxable income for the calculation of advance tax liability at the rate specified in the slab.
Tax liability on income received by the employee already deducted by the employer in the form of TDS.
Income from other sources considered as income and advance tax specified in the income tax slab required to pay as advance tax.
Also Read: Tax deduction u/s “80G” of Income Tax Act (relief on charity)
Step by step guide to paying advance tax payment
Paying your advance tax challan is not as difficult, You can pay your advance tax online easily.
Here is step by step guide:
- Initially, calculate your advance tax, by the simple method of gross (receipt) income deduction under section 80 and you will get net taxable income. Against which you calculate your tax under specified tax slab.
- Visit https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp.
- Click on CHALLAN NO/ITNS 280 under (Non-TDS/TCS) for making an online income tax payments.
- After clicking to Challan no./ITNS 280 (Payment of Income-tax & corporate tax), you jump into e-payment portal.
- You have to select 0021 (Income Tax Other Than Companies).
- It is required to enter your “PAN” number and assessment year.
- In the next portion complete address is also required.
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- Next section – Type of payment, you must select (100) advance tax.
- Next step is the selection of the mode of payment, there is two option available – net banking and debit card.
- Selection of any mode will drag you to the bank portal.
- Click Proceed, If your name has appeared correctly, click the submit button.
- Complete the transaction, Note out your transaction ID and take the printout.
Also Read: Fill Income tax return ITR1 in 5 Minutes: The Complete Guide (Updated)
How to correct Challan 280 online –
If you have paid Challan 280 online then only Assessing Officer can correct the details. We can correct the details in the challan 280 by
- Submitting a letter to your Income Tax Assessing Officer in the specified format.
- You can send it through the post, but it’s better if possible to visit personally and submit the letter.
- Also, get acknowledgment on another copy of the same letter
Is everybody entitled to pay advance tax?
No:
You are eligible for paying your advance tax on the terms- If your net income tax is more then (tax already deposited on your behalf by your employer/or banks or any other source) is exceeded by ₹ 10000.
In case you have not paid your advance tax, even if you are entitled.
you would require to pay interest u/s 234B and u/s 234C of the Income Tax Act, 1961.
Also Read: Income tax rebate u/s “87 A” allowed to individual