Who is required and how to calculate Advance Tax payment ? Udaipur’s expert CA offer guidance.

Explore FAQs on India’s advance tax payments. Udaipur’s expert CA offer guidance to help meet your tax obligations effectively and avoid penalties.

1. Who is required to pay advance tax?

Any individual or entity with a tax liability of more than ₹10,000 in a financial year, except for senior citizens without business income.

2. How is advance tax different from TDS?

TDS is deducted at the source of income, while advance tax is paid directly by the taxpayer on their estimated income.

3. Can I revise my advance tax payment?

Yes, adjustments can be made in subsequent installments if the income estimates changes.

4. What happens if I fail to pay advance tax?

Interest is charged under Sections 234B and 234C, and the taxpayer may face notices or penalties.

5. How do I calculate advance tax for business income under presumptive taxation?

Tax is calculated as a percentage of gross receipts (6% or 8% as applicable) and paid in a single instalment by 15th March.

6. Is advance tax applicable on capital gains or other income?

Yes, advance tax must be paid on capital gains or any other income not subject to TDS. For unforeseen incomes like capital gains, the tax should be paid in the subsequent installment after the gain is realized.

7. Can I claim a refund if I overpay advance tax?

Yes, excess payment can be claimed as a refund while filing the income tax return.

8. Where can I find more information on advance tax?

Details are available on the official Income Tax Department website and in Sections 207–219 of the Income Tax Act, 1961.

Understand advance tax payment in India . Get insights from Udaipur’s expert CA to simplify your tax obligations and stay compliant.