?Advance tax means Income Tax should be paid in advance instead of lump sum payment at year end. These payments have to be made in installments as per due dates provided by the income tax department.
?Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. Advance tax applies to all tax payers, salaried, freelancers, and businesses.
Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax.
Presumptive Businesses– Taxpayers who opt for presumptive scheme where business income is assumed at 8% of turnover of less than ?2 crore are exempt from advance tax for FY2017-18.
Presumptive income for Businesses for FY 2016-17 – Starting financial year taxpayers who opt for presumptive scheme have to pay whole amount of their advance tax in one installment on or before 15th March. If they pay all of their tax dues by 31st March that is also ok. Starting FY 2016-17. businesses with turnover of Rs 2 crores or less can opt for this scheme.
Presumptive income for Professionals for FY 2016-17– Starting FY 2016-17, this scheme has been extended to professionals such as doctors, lawyers, architects etc if their gross receipts are 50 lakhs or less(Section 44ADA). Such taxpayers have to pay advance tax as per quarterly installments.
Select ITNS 280
Opt 0021 - Other than Companies
Select respective Assessment Year (Speak with RCCO representative)
Opt Type of payment - 100 - Advance Tax
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