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The following is the process for income tax payment:
Below is the process for individuals to clear income tax dues with Challan 280:
After the due income tax has been paid, it’s time to file the income tax return. Mention the 7-digit BSR Code and 5-digit Serial Number of Challan 280.
Advance Tax has to be paid by individuals with income tax dues of more than Rs. 10,000, and belong to any of the following categories:
Individuals belonging to these categories have to pay their taxes in advance and not through TDS deductions, as in the case of salaried individuals.
Income tax return cannot be submitted to the IT Department unless the entire income taxable amount has been paid in its entirety. However, a certain amount of the taxable amount may remain pending during filing of IT returns. The applicable interest has to be paid under Section 234B and 234C, along with the income tax due, if you are paying after 31st March.
This is applicable for individuals who have been intimated by the Income Tax Department to pay additional taxes on their annual income.
Below are the due dates for income tax payment for FY 2018-19.
|Due Dates||For Individuals|
|On or before 15th June||Up to 15% of advance tax|
|On or before 15th September||Up to 45% of advance tax less advance tax already paid|
|On or before 15th December||Up to 75% of advance tax less advance tax already paid|
|On or before 15th March||Up to 100% of advance tax less advance tax already paid|
The interest for late payment is set at 1% on the amount of tax due. It is calculated from the individual cut off dates shown above, till the date of actual payment of outstanding taxes. Interest under Section 234C is levied, if advance tax paid in any instalment(s) is less than the required amount. In other words, interest under Section 234C in case of deferment of different instalments of advance tax is levied in following cases:
What is the penalty levied on non-payment of income tax by 31st March?
The interest for late payment is set at 1% on the amount of tax due. It is calculated from the individual cut off dates shown above, till the date of actual payment of outstanding taxes.
What is Advance Tax?
Advance Tax is the taxable income exceeding Rs. 10,000 payable by individuals in advance, and falling under any of the below categories:
Advance Tax is not applicable to those salaried individuals whose annual income is taxable as per DS deductions.
What is Self-Assessment Tax?
Income tax returns cannot be filed unless the entire taxable amount has been paid in full. However, a certain part of the taxable amount may remain pending during IT returns filing. The applicable interest is payable as per Section 234B and 234C of the Income Tax Act, 1961, along with the due income tax, if you are paying after 31st March of the Financial Year.
What is Regular Assessment Tax?
Regular Assessment Tax is for individuals who have been notified by the Income Tax Department to pay additional taxes on their annual income.