Q. Who is supposed to pay the income tax electronically?
Ans. All assesses whose accounts are subject to tax audit and all the companies, are supposed to pay income tax electronically only whether it is advance tax, regular tax or self assessment tax. For other assessees it is optional. If they want to pay income tax electronically, they can deposit their taxes electronically also.
Q. What is advance tax?
Ans. Advance tax means total tax computed on the estimated income for current financial year.
Q. Who is liable to pay advance income tax?
Ans. Any tax payer whose estimated tax liability after adjusting the TDS amount, during a financial year is Rs.10000/= or more, is supposed to pay advance income tax.
Q. When should advance tax be deposited?
Ans. All assessees are required to deposit their advance income tax in four installments i.e. by 15th June – 15%’ by 15th September – 30%, by 15th December – 30% and by 15th March – 25%. Tax on capital gains or casual incomes arising after 15th March, if any, should be deposited by 31st March.
Q. How shall we calculate the amount of advance tax?
Ans. First of all you have to calculate the estimated income for current financial year. Calculate the amount of income tax on estimated income. Deduct the amount of TDS from the amount of income tax. Balance amount will be the amount of advance income tax to be paid.
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