Advance Tax payment in India online [Step by Step ]

As we know that, Income Tax Return ITR Advance Filling is very necessary, so we should do that as rules of the bank and their policies. in this article, we will tell you What are they? We should look at it..!

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It’s really easy to find Advance Tax payment in India,

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Advance Tax refers to the tax payable on the total income of the year irrespective through which source you are earning it. The source can be business, profession, rent, etc.

Advance Tax payment in India Online

One is supposed to pay this tax before the end of the financial year Advance Tax in India Online payment is also stated as “Pay as you earn” scheme. The tax is considered to be liable only when the tax liability exceeds Rs10,000 for a financial year. This tax is quite different from service tax and central sales tax as you need to pay this tax in the same year in which the income is made.

Who Needs to Pay Advance Tax

Advance Tax as any other tax is important for the government as it adds up the total revenue of the government. All the individuals except the salaried employee have to pay this Advance Tax. This tax is not paid by a salaried employee because they have to pay the tax at source. Individual earning money from any other source other than salary like a business, rent, profession and etc have to pay Advance Tax in order to abide by the laws and regulations of the government.

Are you a salaried employee? Happy that, you don’t need to Pay Advance Tax? Well, if you are earning money from any other source other than salary than you have to pay advance tax on it.

Many times, people do confuse with some sources of income that whether it will come in the advance tax or not. So, we bring some of the sources which attract advance tax:

  • Dividend received by the capital gain on the share of a company attracts advance tax.
  • Interest earned on fixed deposits or investment attracts advance tax.
  • Money earned by winning a lottery attracts advance tax.
  • Money earned from house rent attracts advance tax.

Advance Tax Payment Mode

The majority of taxpayer faces the problem of paying the tax. They are basically unaware How to pay the tax. Advance Tax can basically be paid through tax payments Challans at bank branches. Make sure these banks are authorized by the Income Tax Department. Some of the authorized banks are ICICI Bank, Reserve Bank of India, HDFC Bank, Allahabad Bank, State Bank of India and much more.

Even if you are not comfortable with paying advance tax using Challans, you can go for the online payment mode initiated by Income Tax Department or the National Securities Depository.

How to Calculate Advance Tax

One can calculate advance tax by himself without facing any problem. It would basically help all the individual right there to calculate their part of advance tax by their own. It will help an individual to determine whether he/she has to pay the tax or not.

Here are the steps on how to calculate advance tax:

  • First and foremost step to calculate your advance tax is to calculate the total income you receive other than your salary.
  • This being my favorite step is to deduct the expenses from your total income. You can deduct expenses like rent charges, traveling expenses, the internet or phone cost. The expenses on which you have paid service tax are the one you need to deduct from your total income. You must even deduct the TDS which has been already deducted from your salary.
  • Check once again whether you haven’t missed out any form of income like rent, interest, income, etc.  If you have missed some then add it.
  • If the tax due is exceeding Rs10,000 than you need to pay advance tax.

Advance Tax Online Payment Step by Step

For the convenience of the taxpayers, Income Tax Department has introduced the online facilities such that they can pay advance tax being back at their home.  Steps mentioned below are the one you need to be followed to pay advance tax successfully.

  • Visit the official website of Income Tax Department.
  • From all the challans, select the right challan to pay your advance tax.
  • You will be provided with a form which you need to fill with correct information/details like assessment year, address, phone number, email address, bank name, captcha code and some more other information like these.
  • Once you are done with the filling up of the form, the website will direct you to Net Banking page. The amount of advance tax you need to pay is to be rechecked once again here.
  • Once you complete the payment, you will get the details of your payment including challan.
  • It is always necessary to keep the records of your payment especially when it comes to matters related to tax. You need to report your payment after you have paid. You can do so by adding an entry under the paid tax page.

Advance Tax Late Payment

Have you forgotten to pay your advance tax by the first deadline? Then you have to pay interest for it. The interest will be calculated as 1% on the defaulted advance tax. This 1% of interest will be charged for every month until the tax is paid off completely. The interest penalty wouldn’t change even if you don’t pay by the 2nd or 3rd deadline.

Advance Tax Exemption

Looking forward to the problems of the individuals residing in the country, the government of India has provided some exemption on advance tax. Senior citizens(above 60 years) who don’t own any business are exempted from paying advance tax. Along with it, taxpayers who have opted for some presumptive schemes are exempted from paying advance tax. These presumptive schemes can be applied by the people whose business turnover is more than Rs 2 Crores in a financial year. In 2016-17, these schemes were extended to people whose annual receipts were more than Rs 50 lakhs.

Advance Tax Benefits

taxpayer enjoys. Some of the benefits are mentioned below

  • Payment of tax in advance basically helps one to reduce burden or stress. By paying advance tax, you don’t have to worry about money shortage on the deadline of the financial year.
  • For the government, it is convenient as the tax collection process fasten up.
  • When a taxpayer delay to pay this tax, the government gets a chance to charge interest on the advance tax of that individual.
  • Advance Tax somewhere saves an individual from defaulting on their tax payment.
  • It helps a businessman to keep their record well maintained. It provides an idea of the total income they received during the year.

Refund of Advance Tax

If the Income Tax Department finds that you have paid some extra tax than the department will refund you the extra tax. The taxpayers need to claim for the refund by submitting Form 30. They have to do this within a year after paying the advance tax.


In this article there are all the information is given about advance Tax Payment, If you Have any query then, drop it into our comment section.

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