Pay your advance tax by tomorrow to avoid heavy fines

Till last fiscal, the first advance tax payment date for individuals was September 15^th, however, because of amendments made in Budget 2016, the first instalment is now payable 3 months earlier; which makes tomorrow, June 15^th, the last date to pay this tax.

Those who are liable to pay advance tax will have to pay the first instalment by tomorrow to avoid the fine of 1% simple interest per month on late payment.

As per the amendments, individuals (except for exempted categories) will now have to estimate their income for the full financial year, compute their income tax payable and then pay 15% of that by June 15^th.

"It would be very burdensome for the tax payers to estimate their income for the whole financial year in the very first quarter of the financial year but the same has to be complied by the assessee in order to get away with the interest charges that are levied on deferment of advance tax instalments," CA Anil Kapur, Partner, AVAN & Associates, told ET.

However, the new amendment also gives a small concession to the tax-payers. If an individual even pays 12% and 36% of the total tax payable for the full fiscal by June 15th and Sept 15th, instead of the full 15% and 45%, he or she would not be liable to pay interest of 1% on the shortfall in advance tax.

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