Calculating Your Taxes Made Easy: Advance Tax vs Self-Assessment
News 18In India, advance tax denotes the tax individuals, companies, and businesses pay ahead of time instead of deferring payment until the end of the financial year. As per section 208, every person whose estimated tax liability for the year is Rs 10,000 or more, shall pay his tax in advance, in the form of ‘Advance Tax’. The presumptive taxation scheme of section 44AD can be adopted by the following persons : 1) Resident Individual 2) Resident Hindu Undivided Family 3) Resident Partnership Firm A person resident in India engaged in the following professions can take advantage of section 44ADA:- 1) Legal 2) Medical 3) Engineering or architectural 4) Accountancy 5) Technical consultancy 6) Interior decoration 7) Any other profession as notified by CBDT How Is Self-Assessment Tax Calculated And Paid? Self-Assessment Tax Calculation: After filling out your ITR form with the TDS and advance tax details, the system computes your income and checks whether tax is still payable.