The Income Tax (I-T) department in a statement said the taxpayers can submit the first installment of Advance Tax for financial year 2018-19 by June 15. It also stated that any failures to meet the deadline will lead to the department levying penal interest on respective taxpayers.
According to the I-T department, individuals liable to pay the advance tax include “any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted or collected at source is Rs 10,000 or more.” However, senior citizens who don’t have income from any business or profession are excluded from this bracket.
The I-T department has made it mandatory for all corporates and taxpayers, whose accounts are audited under section 44 AB of the Income-tax Act, to make an e-payment to pay their taxes. According to the I-T department, e-payment is much more convenient and it also ensures correct credit.
An advance tax is payable in installments within the due dates set by the IT department. In the first installment, taxpayers are liable to pay 15 percent of advance tax and in subsequent three installments, it increases to 45 percent, 75 percent and 100 percent.