Advance Tax in India: Steps on How to Pay & Calculate Online

The Income Tax department in India has introduced some facilities in order make the online payment of advance tax easy and feasible. Cited below are the steps required to be followed so that the Online Payment of Advance Tax can be achieved.

• The first step is Opening of the official Government website
• Next comes locating the right challan to pay your Advance tax
• Filling correctly important details like the right assessment year, address, phone number, email address, bank name, captcha code etc
• After this, you'll be redirected to the bank's Net Banking page, to check the Income to be paid.
• The next step provides details of payment including challan number
• Next and one of the most important steps is reporting the completion of payment by adding an additional entry under the 'paid tax page'

Advance Tax Late Payment

In case a person overlooks the first deadline date for payment he has to pay a fine which is 1% interest on the amount that is defaulted for each month till the whole amount is paid off. The same form of fine will be levied if you discontinue paying by the second or third deadline.

Exemption for Advance Tax in India

There are a few categories of persons who are exempt from paying this Advance Tax eg., people above age sixty years who do not own any business and people whose annual business turnover is more than 2 crores p.a. but they opt for 'presumptive schemes'. In the financial year 2016-2017 this exemption has been extended to doctors, lawyers and architects with annual turnover less than Rs 50 lakhs.