The Central Board of Direct Taxes (CBDT) has recently said that the last date for remitting third installment of advance tax is on December 15th 2017.
Advance tax means payment of income tax 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 installments as per due dates provided by the CBDT.
The tax payers who are bound to pay advance tax shall pay 75 per cent of the due amount on before 15th December 2017. Before 15th March 2017, 100 per cent of the amount shall be remitted to the Government.
As the deadline become closer, here is something you need to know about Advance Tax.
Under the Income Tax Act, the following tax payers are liable to pay advance tax.
The Board mandates on-line payment of advance tax 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 tax payers, it would be convenient for them since it ensures correct credit.