Advance Tax- It means Income Tax, which needs to be paid by the assessee in advance before year-end. These payments have to be made in installments on or before the due dates as provided by the department. In this article, we will know the Advance Tax Due Dates for FY 2020-21
Who needs to pay advance tax
Under the Income Tax, If the tax liability of taxpayers is expected to be Rs. 10,000 or more than Rs. 10,000 for the respective financial year, then the assessee is required to pay the liability of Advance Tax.
Advance Tax Payment for Presumptive Income
The taxpayers who opted for presumptive income taxation e.g. Section 44AD, Section 44ADA, Section 44AE have to pay the whole advance tax liability in one installment on or before 15th March. They can also pay the entire amount by 31st March.
Advance Tax Due Dates for FY 2020-21
Following are the advance tax payment due dates for FY 2020-21, applicable to all assessee except presumptive taxation scheme-
Due date | Advance Tax Liability |
---|---|
On or before 15th June 2020 | 15% of advance Tax |
On or before 15th September 2020 | 45% of advance Tax less advance tax already paid |
On or before 15th December 2020 | 75% of advance Tax less advance tax already paid |
On or before 15th March 2021 | 100% of advance Tax less advance tax already paid |
Also Read- Financial Year 2020-21: Extended Income Tax Audit Due Date
Following are the advance tax due dates for FY 2020-21, applicable to assessee opted for a presumptive taxation scheme
Due date | Advance Tax Liability |
---|---|
On or before 15th March 2021 | 100% of Advance Tax |
Related Article-
All about section 44AD of the Income Tax Act- Presumptive Taxation Scheme
All about section 44ADA of the Income Tax Act- Presumptive Taxation Scheme
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)