September is here and with it, so is the second due date for payment of advance tax. 45% of advance tax for the financial year 2016-17 has to be paid on or before 15th September 2016.
What is advance tax?
The government asks taxpayers to pay tax periodically through the financial year, instead of at the end of the year in a lump sum. Advance tax is pay-as-you-earn tax.
Who has to pay advance tax?
Advance tax applies to all taxpayers–salaried, freelancers, professionals and businessmen. But if you only have salary income, you don’t have to bother about advance tax because the TDS deducted from your salary is advance tax paid on your behalf. Also, senior citizens above the age of 60 are exempt from paying advance tax if they do not run a business.
Everyone else has to pay 45% of advance tax before the due date of 15 September 2016.
Read our advance tax guide to get a proper understanding of how it is applicable and what are the due dates.
Want to know how to pay advance tax? Our paying income tax due guide will help.