I have paid my Q3 Advance tax which was 75% of Estimated total tax but i have not paid Advance tax in Q 1 & Q 2 so I have question that i have paid 75% tax was correct or not.
Eg.: Total estimated tax 200000 and paid in Q 3 is 75%*200000 = 150000. Is this correct? or I had to pay only 200000*75%-15%-45% =300000
Answer: Tushant January 2, 2023 Answer:
Advance tax is tax that is paid in installments throughout the year, rather than paying the entire tax liability at the time of filing the tax return. It is applicable to individuals, HUFs (Hindu Undivided Family), firms, and companies.
Any assessee whose tax liability is more than Rs 10,000 in a financial year is obligated to pay advance tax (with some exceptions).
If you are required to pay advance tax, you need to pay it in installments throughout the year, based on the following schedule:
If you fail to pay your advance tax as per the schedule, you may be liable to pay a penalty.
In the context of your example, if your tax liability is estimated to be Rs. 2,00,000 and you have not made any advance tax payments in the first two installments, then the payment of Rs. 1,50,000 that you made in the third installment is correct. However, a penalty of 1.00% per month (or part of the month) for the default period will be levied since the advance tax is not paid by the due date.
