Income tax department will charge interest at the rate of 12% from those who do not pay advance tax, know deadline

Income tax: Those who miss the submission of advance tax will have to pay interest to the Income Tax Department at the rate of 12 percent on the amount. All taxpayers, who are responsible for paying income tax more than Rs 10,000 annually, are required to pay advance tax. The advance tax is payable four times a year. 15 percent of the annual estimated tax liability till 15 June, 45 percent till 15 September, 75 percent till 15 December and the remaining tax is payable as advance tax till 15 March.

If a person finds out that the income tax amount paid on the basis of his estimated annual income is more than Rs 10,000, then he should start paying advance tax. Otherwise, you have to be ready to pay interest at the rate of 12 percent on the tax amount.

For example, if a taxpayer has to deposit a tax of Rs 1 lakh per year and does not deposit tax in any quarter and only reflects tax during his returns and becomes liable to pay more than 1 lakh rupees tax, then interest will have to be paid at a rate of 12 percent on the amount of liability. If you want to pay one lakh rupees, then you have to pay 12,000 rupees as interest.

Income tax expert Pramod Popat says, “The Income Tax Department officials immediately get to know how much high value transactions have been done in the account of the taxpayer due to payment made through a payment app like credit or debit card or UPS app.” They also estimate the income of the person concerned based on the payment made from the bank account. Similarly, the details of financial transactions of GST registered traders immediately reach the Income Tax Department. Based on this, they send you a message and email informing you that you have to pay advance tax. Nevertheless, many taxpayers turn their eyes towards this. Therefore, they are being charged at a rate.

He further said, “The income tax account scheme is such that as the taxpayer’s income increases, it should start paying the tax payable.” According to this scheme, if its tax liability is more than Rs 10,000 even after the TDS or TCS is deducted from the income of a salaried taxpayer, then it will have to deposit the advance tax. Similarly, citizens are required to pay advance tax, even if their income is more as a businessman or professional. Similarly, taxpayers who submit estimated tax under Section 44 AD of the Income Tax Act are also required to submit further tax. People who have large income from fares, capital gains, dividends and those who are responsible for paying more than Rs 10,000 are also required to deposit advance tax. Mutual fund investment is also earned capital gains. He will also have to deposit advance tax on withdrawal amount.