Today is the last date to deposit advance tax
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income tax: The last date for depositing advance tax for the financial year 2023-24 is today. If, for some reason, the income tax payer fails to file his tax today, he will have to pay penalty under sections 234B and 243C of Income Tax. Let us tell you that any employed person whose tax liability is more than Rs 10,000 has to deposit advance tax. Along with this, individuals who have any source of income other than salary, such as house rent, capital gains, FD, lottery winnings or income from any other source which comes under income tax, will have to pay advance tax.
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How much advance tax will have to be paid?
Tax is collected by the Income Tax Department in two ways. A tax is deposited in lump sum. Provision has been made for payment of second advance income tax. This means that the total tax is deducted from your earnings four times and you do not have to bear the burden in one go. The first installment of tax has to be paid by June 15. In this, 15 percent of the total tax liability has to be paid. The second installment has to be paid by 14th September. In this, 45 percent of the total tax is collected. This includes the earlier 15 percent. That means, roughly, you have to pay 30 percent of the amount in the second installment. By December 15, the liability becomes 75%, which also includes payments for June and September. At the same time, full payment has to be made in the last installment.
They will get exemption in payment of advance tax
In advance tax payment, senior citizens who do not have any business or professional income are exempted from paying tax. Also, people working on salary who do not have any other source of income. Any person opting for Presumptive Taxation Scheme is not required to pay advance tax except under Section 44AE of Income Tax.
What to do if you miss today?
Depositing advance tax in installments does not burden the taxpayer in one go. But if you fail to deposit tax today, then one percent interest has to be paid on every installment under Section 243C of Income Tax. During this period, up to 10% margin is allowed on the total tax.
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