The Central Board of Direct Taxes (CBDT) has asked the taxpayers to pay second installment (100 percent) advance tax before 15th September 2018.
The persons who are liable to pay advance tax are, (i) Any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted/ collected at source is Rs. 10,000/- or more. (ii) The assessee in respect of eligible business referred to in section 44D is liable to pay the whole amount of such advance tax on or before 15th March of respective financial year.
However, a Resident Senior Citizen (individual who is of the age of 60 years or more) not having income from business/ profession is not liable to pay advance tax.
According to an advisory issued by the Board today, online payment of advance tax is mandatory for all Corporates and also those assessees whose accounts are required to be audited under section 44AB of the Income Tax Act, 1961.
“Though e-payment is not mandatory for other taxpayers, it would be convenient for them since it ensures correct credit,” the Board said. Advance tax means income tax should be paid in advance instead of lump sum payment at year end. It is also known as pay as you earn tax. These payments have to be made in instalments as per due dates provided by the income tax department. The due dates for paying the third and fourth instalments are 15th December 2018.
