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:
A. 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
- 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.
B. 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 (inspite 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)
For individuals paying tax, select 0021 (INCOMETAX OTHER THAN COMPANIES).
Choose the Assessment Year correctly. Choose the type of payment as “100 (ADVANCE TAX)” if you are paying taxes during the financial year. Choose “300 (SELF ASSESSMENT TAX)” if you are paying tax after the financial year has ended. Choose “(400) TAX ON REGULAR ASSESSMENT” if you get a demand notice from the Tax Department.
Figure: Challan for payment of Advance Tax and Self Assessment Tax
Step 3: Select your bank and pay the amount through net banking. Double check the
information entered here and fill in the income tax amount to be paid in the income tax field.
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.