The Income tax Act prescribes for payment of advance taxes if a taxpayer’s liability is more than Rs. 10,000. Section 234C provisions which entails payment of interest for an entire three month period, till the next instalment date is unfair, especially for certain sections of individuals – like gig workers. Will Budget 2024 usher in a suitable amendment?
Salaried individuals can disclose their total income (including the non-salary portion, such as bank interest, rent etc) to their employer, who then accordingly deducts tax at source, each month.
If not, they must ensure advance taxes are duly paid as the tax deducted at source by the employer would not cover the entire tax liability. Non-salaried, have to meticulously compute an pay their own advance taxes.
This is how it is done: Estimate the total income during the financial year. Reduce all eligible exemptions, based on the tax regime. You have opted for. Further, reduce the tax deducted at source, or collected at source. Compute your estimated tax. If the amount of tax is more than Rs. 10,000 advance tax obligations apply.
| Due date | Advance tax payable (% of total tax liability) |
| June 15th | 15% |
| September 15 | 45% |
| December 15 | 75% |
| March 2015, | 100% |
Read more at: The Times of India
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