The Third Installment of Advance Tax
Are you aware of the upcoming deadline for the third installment of advance tax for the assessment year 2023-2024? If not, you should read this blog post carefully and take action as soon as possible.
Advance tax is a way of paying your income tax in installments throughout the year, instead of paying it all at once at the end of the financial year. It is mandatory for taxpayers whose estimated tax liability for the year exceeds Rs. 10,000. The third installment of advance tax is due on December 15, 2023, and it should be 75% of the total estimated tax liability for the year. Failing to pay your advance tax on time can result in interest charges under sections 234B and 234C of the Income Tax Act, 1961. To avoid this, you should calculate your advance tax liability based on your income from various sources, such as salary, business, capital gains, interest, etc., and deduct any tax deducted at source (TDS) or tax collected at source (TCS) from it. You can use the online advance tax calculator provided by the Income Tax Department to estimate your advance tax liability and pay it online through the e-payment facility. Alternatively, you can also pay your advance tax through physical challans at designated banks. Remember, paying your advance tax on time is not only your legal obligation but also a smart financial decision that can save you from unnecessary interest charges and penalties. So, don't delay and pay your advance tax today!
