Advance income tax calculator excel file|| Advance Income tax Gantari Excel file.

 Advance income tax calculator excel file|| Advance Income tax Gantari Excel file. 

We will explain the calculation by way of an example. Ajay is a freelancer earning income from the profession of interior decoration. For the FY 2019-20, Ajay estimates his annual gross receipts at Rs 20,00,000. Ajay estimates his expenses at Rs 12,00,000. Ajay has deposited Rs 40,000 in PPF account. Ajay has also paid Rs 25,000 towards LIC premium. Further, Ajay has paid Rs 12,000 towards medical insurance premium. The professional receipts of Ajay are subject to TDS. Ajay estimates a TDS of Rs 30,000 on certain professional receipts for the FY 2019-20. Besides professional receipts, Ajay estimates an interest of Rs 10,000 on fixed deposits held by him. Ajay’s advance tax liability would be as below:

What is Advance Tax?

Advance tax means income tax should be paid in advance instead of lump sum payment at year end. It is also known as pay as you earn tax. These payments have to be made in instalments as per due dates provided by the income tax department.

Who should pay Advance Tax?

Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. Advance tax applies to all taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax.

Presumptive income for Businesses–The taxpayers who have opted for presumptive taxation scheme under section 44AD have to pay the whole amount of their advance tax in one instalment on or before 15 March. They also have an option to pay all of their tax dues by 31 March.

Presumptive income for Professionals– Independent professionals such as doctors, lawyers, architects etc. come under the presumptive scheme under section 44ADA. They have to pay the whole of their advance tax liability in one instalment on or before 15 March. They can also pay the entire amount by 31 March.

Read in detail about presumptive taxation here Want a CA to calculate and help pay your advance tax dues?

Advance Tax Payment Due Date for FY 2020-21

The last date for the payment of Advance Tax for fy 2020-21 is June 20, 2020.

Listed below is the advance tax schedule for self employed and businessmen

Installment DateAmount PayableOn or before September 15th Not less than 30% of the advance tax liability
On or before December 15th Not less than 60% of the advance tax liability
On or before March 15th 100% of tax liability

Advance Tax for Assessees (apart from the ones who are covered under section 44AD)

Payment Due DateAmount to be Paid as Advance TaxOn or before 15 June 15% of the Advance Tax
On or before 15 September 45% of the Advance Tax
On or before 15 December 75% of the Advance Tax
On or before 15 March 100% of the Advance Tax

How to Pay Advance Tax Online?

The advance tax can be paid online through the online facility offered by the Income Tax department. Listed below are the steps that need to be followed to make a successful online payment for advance tax.
Go to the official Government
Click “Services” – epayement: Pay Taxes Online
Select the right challan to pay your income tax ( Advance tax)
Fill in the correct details in the form. You’ll have to fill in details such as the right assessment year, address, phone number, email address, bank name, captcha code and other such important details.
Once you are done filling in the details, you’ll be redirected to the bank’s Net Banking page. The income to be paid should be rechecked in this page.
Next, you’ll get details of your payment including your challan number.
It is important to report your payment after you’ve made the payment. You can do so by adding an additional entry under the paid tax page.

Advance Tax Challan 280

Challan 280 allows people to pay their income tax online on the website of the Income Tax Department of India. On the website, people have to select this challan and fill the form and then use it to pay taxes online/office. If they want to pay the tax offline, they have to download Challan 280 form from the Income tax welcome, fill it and submit it at the bank.

How to Calculate Advance Tax Payment?

An individual can calculate advance tax on their own and determine if they have to pay advance tax.

Listed below are the steps to calculate advance tax:

Determine the Income: Determine the income you receive other than your salary. It’s important to include any ongoing agreements that might pay out later.

Minus the Expenses: Deduct your expenses from the income. You can deduct expenses related to your work (freelancing) such as rent of the workplace, travel expense, internet and phone costs.

Total the Income: Add up other income that you might receive in the form of rent, interest income, etc. Deduct the TDS deducted from your salaried income.

Total Advance Tax: If the tax due exceeds Rs.10,000 then you’ll have to pay advance tax.
Example of Advance Tax calculation

Assuming if your tax liability is Rs.1 lakh, then you will pay:

Payment Due DateAmount to be Paid as Advance 

TaxOn or before 15 June Rs.15,000
On or before 15 September Rs.45,000
On or before 15 December Rs.15,000
On or before 15 March Rs.25,000

Note: The advance tax will vary depending on the tax amount and the date on which you clear your tax.

Advance Tax Late Payment and Interest

If advance tax paid by you is less than 90% of the assessed tax, then you will be charged an interest of 1% every month under Section 234B of the Income Tax Act. The interest is computed as 1% interest on the defaulted amount for every month until the tax is paid off completely. The same interest penalty will be applicable if you don’t pay by the second or third deadline.

Under Section 234C of the Income Tax Act, if you do not pay your advance tax installment on time, then you will be charged an interest rate of 1%.
Refund in Advance Tax Payment

At the end of the year, if the Income Tax Department finds out that you have paid more tax than you should have paid, then it will refund the excess amount. Taxpayers can claim refund by filling and submitting Form 30. They have to make the claim within a period of one year from the last year of the assessment

Important link:-

FAQ’s on Advance Tax
  1. Is an NRI required to pay advance tax?
  2. If you are accruing income in excess of Rs.10,000 will be required to pay advance tax.
  3. I forgot to pay my fourth installment on 15 March. What should I do?
  4. In case you miss the deadline of paying your fourth installment on 15 March, you can make the payment by 31 March.
  5. What happens if advance tax paid is more than the total tax liability?
  6. If the advance tax paid is more than the total tax liability, the extra amount will be refunded. If the advance amount is more than 10% of the tax liability, then an interest of 6% p.a. will be paid by the IT Department.
  7. What is mode of payment of advance tax?
  8. You can pay your advance tax either by internet banking or through challan.
  9. Will any tax payable till 31 March treated as advance tax?
  10. Yes, any tax paid till 31 March will be considered as Advance Tax payment.
  11. Advance income tax calculator excel file|| Advance Income tax Gantari Excel file.

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