Description
💰 Advance Tax – Pay-As-You-Earn
Advance Tax refers to paying a portion of your income tax liability before the end of the financial year. As the name suggests, it is paid in advance when your tax liability exceeds ₹10,000 in a financial year. This system is also known as the “pay-as-you-earn” scheme.
✅ Who Needs to Pay Advance Tax?
- Salaried Individuals: Generally not required, as tax is deducted at source (TDS) by employers.
➤ However, if they have additional income (e.g., rent, capital gains, interest) that raises their tax liability above ₹10,000, they must pay advance tax. - Professionals and Freelancers: Required to pay, since income is not subject to TDS.
- Businesses and Corporates: Must pay advance tax as per prescribed schedule.
📅 Advance Tax Due Dates (FY 2024-25)
| Due Date | Minimum Advance Tax Payable |
| On or before 15th June | 15% of total estimated tax |
| On or before 15th September | 45% of total estimated tax |
| On or before 15th December | 75% of total estimated tax |
| On or before 15th March | 100% of total estimated tax |
Required Documents
- Pan Card
- Aadhar Card
- ITR Id and Password
- Last year ITR and Computation
- Current Year Income & Savings details
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