Today is the last date for submission of advance tax of income tax. If you won’t deposit the advance tax by 15 March, then you will have to pay a fine for it. It is to be known that in a financial year, the advance tax has to be deposited in four instalments. The advance tax has to be paid in case of tax liability of more than Rs 10,000 during any financial year. Therefore, the last date for depositing the fourth installment of advance tax in the current financial year is 15 March i.e. today.
Due to the coronavirus, the advance tax collection has been collected less than the target in 2020. Therefore, this year it has been asked to collect more tax compared to last year. Taxpayer Income Tax officers are contacting the Income Taxpayer through Chartered Accountant and Tax Advocate and are requesting to pay more and more advance tax.
Tax and Investment expert Balwant Jain on advance tax said that after paying all types of TDS and TCS in a financial year, if your net liability is more than Rs 10,000, then you have to pay advance tax.
According to Jain, the income tax law provides that advance tax has to be paid in the ratio of 15%, 30%, 30% and 25% respectively on 15 June, 15 September, 15 December and 15 March. He said that apart from businessmen, salaried people also have to pay advance tax.
Tax and investment expert Balwant Jain said, if a person has not deposited advance tax by March 15 or has paid less tax, he can pay it by March 31 of the same financial year. This payment will also be considered as advance tax. But from March 15 to March 31, interest is paid at the rate of one per cent on the payment of advance tax.