What Finology Offers:

We collect all the necessary data from you
Process your data and suggest tax saving measures
Prepare and file the return

What is Advance Tax?

We all are liable to pay income tax on an yearly basis if our income crosses a certain threshold. As per the Income Tax Act, every individual and entity must pay this tax in advance (Advance Tax) if their expected income tax liability for current financial year can be INR 10,000 or more. It is to be paid quarterly, and only a fixed percentage of total expected liability is to be paid. There is a deadline for paying advance tax each quarter and in case of failure in payment on time, there are certain fines imposed by the Act. So, if your expected tax liability at the end of current financial year can be 10,000 or more, you must pay advance tax regardless of your source of income to avoid any fines and penalties. Also, you don’t have to worry if you have paid advance tax in excess of your liability, as you can always claim a refund. Further, there are certain exceptions to the obligation of paying advance tax, such as individuals and HUFs can opt for presumptive taxation scheme if their yearly turnover is under INR 2 Crores and legally avoid paying it.    

Who are liable to pay Advance Tax?

There are no complicated criteria for liability to pay advance tax, every assessee whose tax liability is expected to go up to 10,000 or more becomes liable to pay the tax in advance. You become liable under the Act regardless of your source of income, however there are certain exemptions listed below -

  • Senior citizens (aged 60 or above) who don’t have any income from business or profession are exempted from paying advance tax.
  • Salaried employees are exempted as the tax amount is deducted by the employer as TDS.
  • Individuals and HUFs who have opted for presumptive taxation scheme are also exempted. 

Advance Tax Payment Due dates 

  • 15% of tax liability by 15th June.
  • 45% of tax liability by 15th September.
  • 75% of tax liability by 15th December.
  • 100% of tax liability by 15th March.

Advantages of Choosing Finology

Quick & Efficient

Utmost attention given to details. Ready to use templates. Saves time. Minimizes costs.

Convenient & Transparent

Access to requisite information at any time of the day. Just a click away.

End-to-End hand-holding

Client communication at the core. Professional and efficient handling of client's information because a happy client is the best referrer.