September 2025

1. Basic Condition A taxpayer is liable to pay advance tax if: Estimated tax liability(after deducting TDS/TCS) for the financial year (FY) exceeds ₹10,000. 2. Key Scenarios Where Advance Tax Applies ✔ Salaried Individuals – If they have additional income (rent, interest, capital gains, freelance earnings, etc.) where total tax due > ₹10,000 after TDS. ✔ Self-Employed Professionals & Businesses – Since most […]

1. When Does This Apply? When the taxpayer calculates their own advance tax liability(not based on the Income Tax Department’s demand). Applies to individuals, businesses, and professionalsliable for advance tax. 2. Steps for Self-Calculation of Advance Tax Step 1: Estimate Total Income for the Financial Year (FY) Include all income sources: Salary (if applicable) Business/Profession income Capital

1. Overview Under Section 210(1) of the Income Tax Act, 1961, taxpayers liable for advance tax must voluntarily calculate and pay their estimated tax liability in instalments during the financial year. This applies when: The tax liability (after TDS/TCS) exceeds ₹10,000. The taxpayer is not exempt(e.g., senior citizens without business income). 2. Key Provisions (A) Self-Calculation of Advance Tax Estimate Current

1. Overview When a taxpayer fails to pay advance tax voluntarily, the Assessing Officer (AO) can issue an order under Section 210(3) demanding payment based on: The taxpayer’s last assessed income, or The returned income(if higher than the last assessed income). If the AO later revises this demand (e.g., due to new information), an amended order under Section 210(4) may be issued. 2.

Section 211 of the Income Tax Act, 1961, mandates the payment of advance tax in four instalments during the financial year (FY) for most taxpayers, with specific due dates and percentages. Below is a detailed breakdown: 1. Regular Taxpayers (Non-Presumptive Income) [Section 211(1)(a)] DUE DATE % OF ADVANCE TAX PAYABLE (CUMULATIVE) KEY POINTS 15th June 15% First

Under Section 234C of the Income Tax Act, taxpayers are generally required to pay advance tax in instalments. However, the first proviso to Section 234C(1) provides relaxation for certain types of income where estimating tax liability in advance is difficult, such as: Capital gains(short-term or long-term) Casual income(lottery, gambling, crossword puzzles, etc.) Dividend income(introduced in Budget 2021) New business income(if income

Section 218 of the Income Tax Act, 1961 deals with situations where a taxpayer is considered to be in default for non-payment or short payment of advance tax. Here’s a detailed analysis: 1. When is an Assessee Deemed in Default? An assessee is treated as being in default if: They fail to pay any instalmentof advance tax as

Section 219 of the Income Tax Act, 1961 governs how advance tax payments are credited against a taxpayer’s final tax liability. Here’s a detailed analysis: 1. Basic Principle All advance tax paymentsmade during the financial year are fully credited to the taxpayer’s account Credit is given in the assessment year(AY) corresponding to the financial year (FY) of payment