Importantđš: The CRYPTO community had many questions about the advance tax. The advance tax season is also here, and the last date to file advance taxes is March 15, 2023.
In this post, you will get to know everything about advance tax.
What is Advance Tax?
Advance tax means income tax should be paid in advance instead of a lump sum at year's end. It is also known as "pay as you earn tax." These payments have to be made in installments as per the due dates provided by the income tax department.
Who should pay advance tax?
1) Traders, freelancers, and businesses: If your total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. The advance tax applies to all taxpayers. Senior citizens, who are 60 years of age or older and do not run a business, are exempt from paying advance tax.
2) Presumptive income for businesses The taxpayers who have opted for the presumptive taxation scheme under Section 44AD have to pay the whole amount of their advance tax in one instalment on or before March 15. They also have the option of paying all of their tax dues by March 31.
3) Presumptive income for professionals Independent professionals such as doctors, lawyers, architects, etc. come under the presumptive scheme under Section 44ADA. They have to pay the whole of their advance tax liability in one instalment on or before March 15. They can also pay the entire amount by March 31.
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