Advance TAX

 Advance Tax in simple words is the payment of Income Tax before the end of the fiscal year.

Advance tax basically means paying your tax the moment you receive your income.

This tax can be paid in installments instead of a lump sum. This is favorable for the government as it creates a continuous flow of income.

Once the advance tax is paid, the government assesses your tax liabilities. Depending on that amount, you either get a tax surplus(refund) or a tax deficit.

Freelancers, salaried taxpayers, businesses, and professionals are eligible to pay advance tax.

Due dates are as follows, at least 15% by 15th June, at least 45% by 15th September, at least 75% by 15th December, and 100% by 15th March.