Advance tax: Payment Guide for FY 2024-25

Advance Tax Payment Guide for FY 2024-25 Advance Tax Payment Guide for FY 2024-25 Advance tax is a crucial compliance requirement for taxpayers whose total tax liability exceeds ₹10,000 in a financial year. Timely payment is essential to avoid penalties and ensure smooth financial planning. This guide will help you understand the due dates, calculation method, and other important aspects of advance tax for FY 2024-25. What is Advance Tax ? Advance tax , also known as ‘pay-as-you-earn ... The scheme of advance tax requires every assessee to estimate his current income and if tax liability on such estimated income exceeds the specified limit, the assessee is required to pay the estimated tax in instalments during the financial year itself. Thus, an assessee is required to pay tax as he earns and therefore the scheme of advance tax is also known as 'Pay as you Earn Scheme'. Advance Tax Payment is a system of paying income tax in installments. Checkout the Due Dates, Applicability,, Procedure, Installment Details. Advance tax ensures that taxes are collected in installments rather than at year-end, reducing the burden on taxpayers and helping the government maintain steady revenue. By knowing the due dates, calculating correctly, and paying on time, individuals and businesses can avoid penalties and stay compliant with the Income Tax Act.