Use Challan 280 to Pay Advance Tax Online<\/a><\/p>\n<\/blockquote>\nThe only difference is you will need to select (100) ADVANCE TAX\u00a0Option instead of\u00a0(300) SELF ASSESSMENT TAX option in Challan 280. Rest everything remains the same.<\/p>\nselect (100) ADVANCE TAX Option instead of (300) SELF ASSESSMENT TAX<\/strong><\/figcaption><\/figure>\nPenalty for not Paying Advance Tax?<\/h2>\n In case you do not pay Advance Tax as per above schedule you will need to pay penalty of 1% simple interest for every month of delay u\/s 234(C)<\/span>.<\/strong> Let us understand this by an example:<\/p>\nAssume that your total tax liability for the financial year 2016-17 is Rs 1 Lakh. So as per above schedule you will need to pay<\/p>\n
\nRa 15,000 (15% of Rs 1 Lakh) by June 15, 2016<\/li>\n Rs 45,000 (45% of Rs 1 Lakh) by September 15, 2016\u00a0[45% includes 15% of June and 30% of September\u00a0installment]<\/em><\/li>\nRs 75,000 (75% of Rs 1 Lakh) by December 15, 2016<\/li>\n Rs 1,00,000 (100% of Rs 1 Lakh) by March 15, 2017<\/li>\n<\/ol>\nNow in case you miss the first installment, you will need to pay a penalty of Rs 150 (1% of Rs 15,000) for every month of delay.<\/p>\n
Case 1:<\/strong><\/span><\/p>\nYou did not pay in June\u00a0but paid entire Rs 45,000 on September 15.\u00a0In this case you will need to pay penalty of Rs 450 (1% of Rs 15,000 X 3 months).<\/p>\n
Case 2:<\/strong><\/span><\/p>\nYou did not pay anything in June, September and December and made all the payment in March.\u00a0In this case you will need to pay the penalty as follows:<\/p>\n
\nFor June\u00a0installment: Delay of 9 months = 1% of 15,000 X 9 = Rs 1,350<\/li>\n For September installment: Delay of 6 months = 1% of (45,000 – 15,000) X 6 = Rs 1,800<\/li>\n For December installment: Delay of 3 months = 1% of (75,000 – 45,000) X 3 = Rs 900<\/li>\n Total Penalty u\/s 234(C) = Rs 1,350 + 1,800 + 900 = Rs 4,050<\/li>\n<\/ul>\nYou can deposit this amount with the final tax installment. So instead of Rs 1 lakh you need to pay additional Rs 4,050\u00a0as penalty for not paying advance tax on time. The tax liability has increased by 4%<\/strong>!<\/p>\nWhat if the Estimated Income Changes after First Installment?<\/h2>\n It may so happen that the estimated income for the financial year changed after you paid the first installment in June. The income may increase or decrease. You can adjust the same in the next installment to be paid in September, which has to be 45% of the new tax liability (in sync with the changed income).<\/p>\n
To Conclude:<\/h2>\n You should calculate your Tax liability for the year and check if you have complied with the Advance Tax installments. In case you do not do so you need to pay penalty of 1% per month for every month of delay which can increase total tax liability by up to 4% (as in the example above). Salaried tax payers should also keep watch on income from other sources and comply with Advance tax payment.<\/strong><\/p>\nHave you paid your Advance Tax?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Budget 2016 proposed many changes related to tax laws. It also impacts the payment schedule of advance tax.\u00a0This post explains the concept of Advance Tax, the new rules\u00a0and\u00a0answers the following questions: Who needs to Pay Advance tax? How to Calculate? How to pay Advance Tax? Deadline to Pay Advance Tax? Whats the Penalty for Non-Payment? […]<\/p>\n","protected":false},"author":1,"featured_media":7150,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[37,3013,6],"tags":[2874,897,2848,2803],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/09\/Advance-Tax-Payment-New-Rules-in-Budget-2016.png",589,353,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/09\/Advance-Tax-Payment-New-Rules-in-Budget-2016-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/09\/Advance-Tax-Payment-New-Rules-in-Budget-2016-300x180.png",300,180,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/09\/Advance-Tax-Payment-New-Rules-in-Budget-2016.png",589,353,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/09\/Advance-Tax-Payment-New-Rules-in-Budget-2016.png",589,353,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/09\/Advance-Tax-Payment-New-Rules-in-Budget-2016.png",589,353,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/09\/Advance-Tax-Payment-New-Rules-in-Budget-2016.png",589,353,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/09\/Advance-Tax-Payment-New-Rules-in-Budget-2016.png",120,72,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":2,"uagb_excerpt":"Budget 2016 proposed many changes related to tax laws. It also impacts the payment schedule of advance tax.\u00a0This post explains the concept of Advance Tax, the new rules\u00a0and\u00a0answers the following questions: Who needs to Pay Advance tax? How to Calculate? How to pay Advance Tax? Deadline to Pay Advance Tax? Whats the Penalty for Non-Payment?…","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6489"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=6489"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/7150"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=6489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=6489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=6489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}