Understanding Advance Tax Payments
Paying advance tax is a crucial aspect of your tax responsibilities, especially for those whose tax liabilities exceed a certain threshold. In India, taxpayers are required to make these payments in four installments throughout the financial year. With the rise of online transactions, paying advance tax online has become a convenient option. This guide will help you navigate the process.
Method 1: Through the Income Tax E-Filing Portal
- To pay your advance tax online via the Income Tax E-filing portal, start by visiting the official portal.
- Log in using your PAN or Aadhar number along with your password and the captcha.
- Once logged in, find the ‘E-pay tax’ option under the ‘E-file’ menu.
- Next, create a new challan by clicking on ‘New Payment’, and select ‘Advance Tax (ITNS 280)’.
- Ensure you correctly choose the assessment year, for example, for FY 2024-25, the assessment year will be 2025-26.
- Select the payment type as ‘Advance Tax’ and then choose your payment mode, which can include net banking, debit card, UPI, or NEFT/RTGS. Complete the transaction using your selected bank and don’t forget to download the challan receipt for your records.
Method 2: Through the Protean (NSDL) Portal
- If you prefer using the NSDL website, start by going to NSDL’s official site.
- Choose ‘E-payment of Taxes’ under ‘Services’. Select ‘Challan ITNS 280’ for advance tax payments.
- Provide the necessary details by selecting ‘Advance Tax’ as the payment type, and fill in your PAN, the assessment year, and tax amount.
- Choose a payment mode such as net banking or debit card, proceed to payment, and ensure you save the challan receipt after completing the transaction.
Key Dates and Penalties
For FY 2024-25, the due dates for advance tax installments are as follows:
- 1st Installment: 15th June 2024 – 15%
- 2nd Installment: 15th September 2024 – 45% (cumulative)
- 3rd Installment: 15th December 2024 – 75% (cumulative)
- 4th Installment: 15th March 2025 – 100%
Be aware that late payments may result in interest penalties under sections like 234B. Ensure timely payments to avoid any additional costs.
Please check my video link for Paying Advance Tax Online.
