rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Advance tax: E-filing may come to your rescue

Advance tax: E-filing may come to your rescue

Last updated on: March 15, 2011 17:36 IST

Advance tax: E-filing may come to your rescue

     Next

Next
Neha Pandey in Mumbai

With Tuesday (March 15) being the last day for paying the advance tax, e-filing could come to your aid.

Software professional, Ashwin Kumaran, is planning to do the same. "My tax liability is Rs 50,000 for the assessment year. I just have a day left and I am not sure if my cheque will get cleared on the last day," says Kumaran.

Advance tax needs to be paid by all - individuals, consultants, businessmen and salaried. However, the liability to pay advance tax arises only if the tax payable after tax deducted at source (TDS) is more than Rs 10,000.

Click NEXT to read on


Image: Last day for paying the advance tax.

     Next

Advance tax: E-filing may come to your rescue

Prev     Next
Prev

Next
For instance, if the tax on total estimated income for the year is Rs 1 lakh and TDS estimated from this income is Rs 60,000, the amount payable as advance tax will be Rs 40,000.

Failure to pay the tax will attract a mandatory interest of one per cent every month on the outstanding amount.

You can pay the advance tax in four instalments through the year - June 15, September 15, December 15 and March 15.

For making an e-payment, you need a bank account with net-banking facility. It should also have the option for e-payment.

Click NEXT to read on


Image: Failure to pay the tax will attract a mandatory interest of one per cent every month.

Prev     Next

Advance tax: E-filing may come to your rescue

Prev     Next
Prev

Next
"Although the money may take a couple of days to get debited, a taxpayer counterfoil will get generated immediately on payment. The counterfoil will have a challan identification number (CIN), which will help you track the tax status," says a senior State Bank of India official.

To make the payment, visit the Income Tax Department's tax information network (TIN) website, established by the National Securities Depository Limited.

Next, select the challan number, which is ITNS 280 for self-employed and high net-worth individuals.

Click NEXT to read on


Image: ITNS 280 for self-employed and high net-worth individuals.

Prev     Next

Advance tax: E-filing may come to your rescue

Prev     Next
Prev

Next
It would take you to another page (an e-payment form) where you need to fill your details, including name, permanent account number (PAN), assessment year (current year 2011-12), address and mobile number.

Towards the end of the form, you need to fill the payment type. Write 100 for advance tax; it is also called 'minor head'.

Next, enter your bank name and proceed. Remember, you can make the tax payment through your designated banks only. To know if your bank provides this facility, you can check the list of banks on NSDL-TIN website, or check with your bank.

Click NEXT to read on


Image: You need to fill the payment type.

Prev     Next

Advance tax: E-filing may come to your rescue

Prev     Next
Prev

Next
As you click the proceed button, a screen that will verify your PAN appears, which also shows you the data entered.

Log in for banking, enter the payable tax amount and confirm. Last, payment challan counterfoil will be displayed, save it as proof.

"Those liable for a tax audit need to pay advance tax online. However, if you are not a professional or a company, you may pay it via cheque to your bank," says Amitabh Singh, tax partner, Ernst & Young.

Click NEXT to read on


Image: Pay advance tax online.

Prev     Next

Advance tax: E-filing may come to your rescue

Prev     More
Prev

More
Typically, companies, individuals (businessmen and professionals) and partnership companies are liable for a tax audit.

Individuals engaged in business with a gross receipt of over Rs 60 lakh (for assessment year 2011-12) and Rs 15 lakh for profession need a tax audit.

In such cases, a tax deduction account number of TAN would be needed.


Image: Need for a tax audit.

Prev     More
Source: