Advance tax payment is due on December 15, 2023: Who should pay, due dates, how to calculate

Salaried individuals, freelancers and businesses with tax liability exceeding Rs.10,000, after reducing TDS, for the financial year, are required to pay advance tax. The tax is computed on the income earned during the year and is paid in instalments as per the designated due dates.

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For individuals and businesses not covered under the presumptive taxation scheme, advance tax is payable as follows:
15 Jun: 15% of total tax liability.
15 Sept: 45% of total tax liability.
15 Dec: 75% of total tax liability.
15 Mar: 100% of total tax liability.

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Advance tax is calculated on the estimated income for the financial year. Estimated total income — Deductions — Exemptions = Taxable income. It is computed as per the applicable income tax slab rate for individuals or corporate tax rate for businesses.

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The payment can be done both online and offline. For online payments, taxpayers can use the Income-tax Department e-payment portal or authorised bank facilities. Offline payments can be made by submitting the challan at designated bank branches.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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