Today (March 15) is the last day to file advance taxes. These are for salaried, freelancers and businesses. However, it is for people whose total tax liability is Rs 10,000 or more in a financial year. But a senior citizen, not having income from business or profession is not liable to pay advance tax.
As per the law, specified assessees have to estimate their income, compute income-tax liability and pay taxes in four instalments during the course of the financial year. The assessees are usually not expected to pay taxes in one instalment.
According to the income tax law, taxpayers are required to pay estimated tax in instalments of 15 per cent, 45 per cent, 75 per cent and 100 per cent, on or before June 15, September 15, December 15 and March 15, respectively.
According to a HT report, a failure to pay advance tax on time could lead to a penalty on taxes under section 234B and 234C of the Income Tax act.
According to IT website, steps to pay advance taxes are as follows:
Step 1: To pay taxes online, login to http://www.tin-nsdl.com > Services > e-payment : Pay Taxes Online or click here on the tab "e-pay taxes" provided on the said website.
Step 2: Select the relevant challan i.e. ITNS 280.
Step 3: Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address of the taxpayer and the bank through which payment is to be made etc.
Step 4: On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name of the taxpayer as per the master will be displayed on the confirmation screen.
Step 5: On confirmation of the data, the taxpayer will be directed to the net-banking site of the bank.
Step 6: The taxpayer has to login to the net-banking site and enter payment details at the bank site.
Step 7: On successful payment 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.
