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    By: Bijan Biswal
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    By: Bijan Biswal
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    Advance tax implies that personal expenses should be paid ahead of time rather than a single instalment at year-end. It is otherwise called pay as you procure charge. These instalments must be made in portions according to due dates given by the personal assessment department. Advance tax payment online is to be paid based on assessed pay during the year. 

    An individual need to pay advance tax when they have surpassed the expenses of Rs 10,000 in a financial year. Generally, it is expected that you will acquire the pay first and pay the charges on it. Be that as it may, if there should be an occurrence of advance expense, an assessee needs to appraise his pay for the year and pay the duties incompletely. Advance duty is the act of paying charges ahead of time instead of paying a single amount sum toward the finish of the financial year. Otherwise called the 'pay as you procure' plot, these assessments should be paid around the same time the payment is gotten. 

    According to Income Tax Act, a citizen needs to make good on advance expense if his/her duty risk is at least 10,000 of every financial year. For example, assuming your assessment obligation for the FY 2019-2020 surpasses 10,000, you are needed to pay advance duty around the same time or then again completely ahead of time.

    Who needs to pay Advance Tax? 

    Primarily advance tax applies to independently employed individuals like money managers, experts, consultants, and so on. NRIs who have pay of more than Rs 10,000 in India are likewise at risk to make good on advance assessment. Senior residents who don't have any pay from business and calling are absolved from making good on advance duty. Salaried people don't need to pay advance expenses since their charges are now deducted at the source when the compensation is delivered.

    Any assessee whose expense is deducted at source won't need to cover advance duty. For instance, a specialist works for two customers, of which one sends him the sum after TDS allowance while the other doesn't. In such cases, the advance expense should be paid for the second customer just as the first has effectively deducted the charge at the source. 

    Beginning with the Financial Year 2016-17, the individuals who choose the hypothetical plan under the Income Tax Act are needed to pay the whole measure of their development charge prior to the fifteenth of March. An elegance time of 15 days, that is, till 31st March, is additionally permitted. Possible tax assessment conspires offered to private companies wherein the business pay is assumed at 8% of the given business year's turnover or gross receipts.

    If the gross receipts/turnover is gotten via a record payee bank draft or record payee check or with the utilization of an electronic clearing framework, the business pay ought to be determined at 6% of the turnover. The sum determined from that point turns into the last available pay for the business, and the development assessment ought to be paid on this sum.

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    Calculation of Advance Tax:

    Advance tax payment online is to be paid based on assessed pay for a financial year. You can consider allowances like Section 80C while assessing your expense responsibility. It is usually done based on the past pay patterns of the citizen. The assessee needs to appraise his future pay and pay the duties appropriately. This determined pay will be diminished by TDS deducted, TCS gathered, MAT/AMT credit and any alleviation under charge settlement. After making the initial two portions, the assessee can likewise modify the assessed pay and pay the following portions appropriately. 

    Unlike different situations where the public authority requests charge instalment, here the onus is on the citizen to compute his pay for an evaluation year and make the instalments ahead of time in the current monetary year. The motivation behind why this is done is because the individual who procures the pay will know the future patterns better compared to the assessment specialists.

    Steps to pay advance tax online:

    There are five simple steps that you could use for advance tax payment online:-

    In the first step, you need to visit the online tax payment portal that is NSDL-TIN website. On this website, you will be able to pay the advance tax.

    After you have visited the online tax payment portal, you will be able to see the Tax Information Network page. On this particular page, you need to select the CHALLAN NO./ITNS 280 option. This income tax challan 280 online payment option is for the payment of income tax & corporation tax. 

    Then the CHALLAN NO./ITNS 280 page will open, and you need to fill the Challan 280. Here you need to select (0021) INCOME-TAX (OTHER THAN COMPANIES) for individual taxpayers. Then you need to enter your PAN Card Number and select Assessment Year (2019-20) for this year's tax return. You also need to fill up your Address, email & phone number and select (100) ADVANCE TAX. 

    You may find a list of banks where you need to select from List of Banks or Debit card as the case may be (I have selected ICICI net banking). After you have filled in all the details, you need to fill in the Captcha code and click Proceed.

    In the fourth step, you could find a new screen where you need to check the details you have filled in. Verify the details and check whether everything is okay. If all the details are correct, you need to select okay to submit to Bank. If you find any mistake in the form, then you can edit it on this screen. When you select edit, you will be redirected to the previous screen. After editing the details, you can select ok and submit to the bank option. The option Submit to Bank option will take you to the banking login screen.

    In the last step, you need to login into your net banking. Then you need to check the details that are already pre-filled as in the form. Fill in the details of the tax that is to be paid. 

    Follow the above steps to pay your advance tax quickly through the online tax payment portal. 


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Bijan BiswalMonday , May 17 , 2021


    Mr Bijan is the man behind www.paisababu.com. He is a well qualified (B.com, MCA, MBA, LLB ) and entrepreneur having more than 20 years expertise in Business. He engaged in blogging for many years. Paisababu.com blog is ranked as one of the Top Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money.to make ware people about various financial products in India for their use. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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