This is normal yearly Quarterly SOP. Nothing new. But sending this reminder only for ready reference.
We all know that we must pay advance tax before the financial year ends in 4 instalments: 15th June, 15th September, 15th December and 15th March.
This is not applicable if your Tax due is nil, of Tax due is less than the TDS already deducted by your customers etc.
Points to remember
- Is this on estimate basis ? Yes, make your best estimate .
- For September month, the amount is calculated as follows: (a) Calculate 45% of the Annual Tax payable . And reduce the Advance tax, you have already paid in the instalment of 15th June.
- This is not applicable if your Tax due is nil, of Tax due is less than the TDS already deducted by your customers etc.
- What will happen if you don’t pay in time ? Govt will charge a bit of interest… this is approx 1% p.a. ( for a block of 3 months, in 1 go ). And Note, that interest is “disallowed”. Hence effective interest comes to 15% p.a. And comes to 3 months at a go. So, miss the date by just 2-3 days and pay interest for full next 3 months.
- How to pay ? Online only.
- Site name = either your Bank account will have a link, or
- Official sites are : https://incometaxindia.gov.in/ and https://incometaxindia.gov.in/Pages/tax-services/pay-tax-online.aspx
Benefits of Paying Advance Tax
1. Avoidance of interest cost
2. Better cash flow management
3. Avoidance of last-minute stress in March ( end of the year )
4. Avoidance of default notice by the tax department
PLS AVOID LAST DATE. and pay in time, as per normal annual SOP.
Advance tax Due date Sept 2023 – Income Tax India
Have you paid your Advance tax for FY 23-24 ( AY 24-25 ). Do you know you can pay monthly also. Yes, try it.
So, again, Make your company more “marketable” in Banking Industry.
A Tax paying company is of course better “loan-worthy” . and if you pay advance taxes in time.,,. you actually end up paying lower taxes… since you save the interest costs
Start go Ahead. And Enjoy the new way of doing business.
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