They cannot be deducted on an estimated basis. Note: Under Income tax act, for computing advance tax, TDS and TCS can be deducted only if they are actually deducted or collected. Less: TDS and TCS, only if actually deducted or collectedĮstimated Net Tax Payable for the whole year Tax as per rate in force in relevant assessment year Less: Estimated deductions under chapter VI-A They are required to pay advance tax only if they are having income from business or profession, and tax liability is Rs 10,000/- or more.Īdvance tax by the Corporate and non-corporate assessee is payable in four instalments, except assessee opting for section 44AD or 44ADA.Įstimated Gross total income for the relevant previous year So, senior citizens are not required to pay advance tax even though their tax liability is Rs 10,000 or more. Senior Citizens are required to pay advance tax only if their total income includes income under the head ‘Profit and Gain from Business or Profession’ Under Income tax act, advance tax is required to be paid by all the assessees, if there is a tax liability in their hands, except -Īdvance tax is not required to be paid if total income tax estimated for the year is less than Rs 10,000/. Under Income tax act, advance tax is the mechanism by which Central Government collects taxes payable in the assessment year in previous year itself.
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