Why is the deadline of June 15 special for tax depositors, it will be expensive if you miss
If you are a taxpayer and you have an advance tax liability, then you should take special care of June 15. This is the last date to deposit advance tax. If you do not deposit your tax on time, it may cost you expensive. Advance tax is the amount of income tax that is paid in advance at the end of the year instead of lump sum payment. It is also known as income tax. The payment of advance tax is made in installments according to the fixed dates set by the Income Tax Department.
Who has to do advance tax deposit
Every taxpayer with an estimated tax liability of ₹ 10,000 or more in a financial year has to pay advance tax. According to ICICI Bank, salaried people can pay advance tax on income earned from their jobs. Freelancers can pay advance tax on their various sources of income achieved throughout the year. Businessmen can pay advance tax under the taxation scheme of Section 44 AD on income obtained through their company. Senior citizens who have earned income from business in a financial year will have to pay advance.
Necessary dates for depositing advance tax
Advance tax has to be repaid till the fixed dates throughout the year. 15% on or before 15%, 15% or before 15%, 45%, 15 December or before 15% and 15 March or before 100%, advance tax is to be paid up to 100%.
Why is it important to pay advance tax
According to ICICI Bank, Advance Tax is an income tax to be paid in advance for income earned in a particular financial year. Generally, tax should be paid when income is earned. Nevertheless, under the tax provisions of advance tax, the payment has to be estimated for the entire year. And based on this estimate, tax is paid at certain time intervals. It is important that the taxpayer estimates the income and then calculate the estimated tax on it to find out whether it needs to pay advance tax or how much.
How expensive it costs when you miss deadline
According to Section 234B of the Income Tax, you have to pay at least 90% of your total tax by 31 March through tax cuts / tax collection (TDS / TCS) at the source at the source or source. If you fail to pay advance tax, then you will have to pay interest at an interest rate of 1% on the unpaid amount under Section 234B.
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