Advance Tax Alert Who Must Pay Before June 15 And What Happens If You Miss IT Abp News
Taxpayers must pay the first advance tax installment by June 15th to avoid interest under Sections 234B and 234C of the Income Tax Act.
The advance tax payment deadline looms for June 15, requiring taxpayers to estimate their current year income and pay tax in installments. This applies to individuals and companies whose estimated tax liability exceeds ₹10,000 after deducting TDS. Salaried individuals with significant income beyond their salary are also liable to pay advance tax. Failing to pay or underpaying advance tax by the due dates attracts interest under Sections 234B and 234C of the Income Tax Act. Taxpayers can make payments online through the e-payment portal of the Income Tax Department or offline through designated banks. Accurate income estimation and timely payment are crucial to avoid penalties and ensure compliance.
Section 208 of the Income Tax Act mandates advance tax payment for income exceeding a specified threshold. Sections 234B and 234C impose interest for defaults in payment of advance tax. These provisions ensure a steady revenue stream for the government and encourage timely tax compliance.
Taxpayers often underestimate income from sources other than salary, leading to advance tax defaults. A proactive approach to income estimation, considering all potential earnings, is essential. CFOs should integrate advance tax planning into their overall financial strategy to avoid last-minute rushes and potential penalties.
Missing the advance tax deadline can result in interest charges and increased compliance scrutiny, impacting financial planning and tax liability.