ADVANCE TAX AND SELF-ASSESSMENT TAX

For Individuals, there are two types of tax that you might have to pay before submission of your return as on 31st July 2017:

  1. Advance Tax

If you have annual tax dues of more than Rs.10, 000, you must pay income tax in advance. Usually, for the salaried, these income tax payments are taken care of via TDS deductions by employer.

Due Dates of payment of Advance Tax for FY 2016-17

For Individuals

On or before 15th June – Up to 15% tax

On or before 15th September – Up to 45% of tax

On or before 15th December- Up to 75% of tax

On or before 15th March- Up to 100% of tax

How to calculate and pay advance tax:

  • Estimate your Total Income: Add income from all sources. Include salary income, interest income, capital gains etc.

  • Allow deductions: From your total income reduce deductions and arrive at your taxable income.

  • Calculate Tax due on total income: Apply the latest income tax slab rates on your taxable income to calculate your income tax due. Reduce any TDS that may have been deducted from your total tax due. These have to be paid as per the installments mentioned above.

  1. Self Assessment Tax

Your income tax return cannot be submitted to the tax department, unless you have paid tax dues in full. Sometimes, you may see tax payable at the time of filing your return (in spite of paying advance tax).

You can only file the returns once you have successfully paid the income tax online.

Usually, interest under section 234B and 234C will also have to be paid along with your tax due, if you are paying tax after 31st March.

For online payment of both advance tax and self assessment tax

Step 1: Login to http://www.tin-nsdl.com > Services > e-payment: Pay Taxes Online.

Step 2: Select the relevant Challan (CHALLAN NO./ITNS 280)

Figure: Challan for payment of Advance Tax and Self Assessment Tax

Step 3: Select your bank and pay the amount through net banking.

Step 4: A challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made. Please store the Counterfoil.

In case you need some expert help to calculate the tax payable and the amount of advance tax to be paid, contact us: info@unicomply.com or call: 9739002844.

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