Advance Tax payment rules for salaried employees, senior citizens, NRIs, professionals: Key points

financialexpress.com:

Advance Tax Payment Rules: Every individual, including salaried employees, is required to pay advance tax if his/her tax liability for the year is more than Rs 10,000. For salaried employees, employers generally deduct the advance tax from their monthly salary and submit it to the tax department.

According to Archit Gupta, Founder and CEO of Clear, the Rs 10,000 or more limit is arrived after the deduction of all the tax credits of TDS/TCS/foreign tax credit/Section 89 relief etc. from the original estimated tax liability.

Here’s a look at advance tax payment rules for salaried, NRIs, senior citizens, and professionals.

Tax on salary is deducted by the employer, so there is no need to be concerned about advance tax. However, it is to be noted that during the year when a change in employment happens, then there is a big possibility that the new employer, not having any idea about previous employment, has computed tax incorrectly and deducted tax based on that.

“In this case, the individual is advised to check the tax computation and inform the new employer. If they are not deducting tax as they should be, the individual can take the matter in their own hand and pay the tax on their own to avoid the interest on non-payment of advance tax,” says Gupta.

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The payment of advance tax needs to be made as per the dates and limits mentioned in the following table:

Gupta says professionals, who are opting for presumptive taxation, need to pay the entire amount of advance tax within the 15th of March of the concerned financial year, as opposed to payment of advance tax on a quarterly basis applicable to all the other assessees

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