Every person whose estimated tax liability for the year is Rs. 10,000 or more is liable to pay advance tax. However, a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax.
Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:
| Status | by 15th June | By 15th September | 15th December | 15th March |
|---|---|---|---|---|
| Taxpayers (other than those who opted for presumptive taxation scheme of section 44AD) | Upto 15% of advance tax | Upto 45% of advance tax | Upto 75% of advance tax | Upto 100% of advance tax |
| Taxpayers who opted for presumptive taxation scheme of section 44AD | NIL | NIL | NIL | Upto 100% of advance tax |
Any tax paid till 31st March is treated as advance tax. The deposit of advance tax is made through challan ITNS 280 by ticking the relevant column, i.e., advance tax.