Advance Tax Payment
Advance Tax is income tax paid in installments throughout the year, instead of one lump sum at filing time often called "pay as you earn" tax. It's mandatory for individuals and businesses whose total tax liability exceeds ₹10,000 in a financial year, including freelancers, business owners, and those with income beyond salary (like capital gains or rental income).
WHAT YOU NEED
Requirements for TDS Return Filing
Who must pay
- ✓Individuals and businesses with tax liability above ₹10,000/year
- ✓Freelancers, business owners, and those with non salary income
- ✓Salaried individuals with significant additional income (capital gains, rent, etc.)
Good to know
- ✓Missing installments attracts interest under Sections 234B and 234C
- ✓Senior citizens without business income are exempt from advance tax
