Income Tax: Last Date to Pay First Advance Tax Today; Calculation, What Happens if You Miss
News 18Advance tax is the amount of income tax that should be paid in advance during the financial year instead of paying lump-sum amount at the end. According to Section 208 of Income Tax Act, a taxpayer needs to pay advance tax if his or her tax liability is Rs 10,000 or more in a financial year. Taxpayers are required to pay 100 per cent of advance tax liability by March 15 of the financial year. What Happens if you Don’t Pay Advance Tax Individuals have to pay a penalty under Section 234B and 234C of Income Tax Act for default in payment of advance tax. a) If a taxpayer fails to deposit advance tax or less than 90 per cent of the total tax liability, an interest of 1 per cent per month or part of the month from April till the date of payment of tax, will be levied, as per Section 234B of Income Tax Act.