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• Also, known as pay as you earn tax. It is the tax paid in advance instead of paying lumpsum at the year end.
• Advance tax must be paid when you earn income from sources other than salary.
• It is only payable when and if income tax payable is Rs. 10,000 or more.
• Senior citizens (60 or above years.) who do not have income from Business/ Profession are exempt from advance tax payment.

Due dates of payment of advance tax: –

1. 15% of tax payable on or before 15th June
2. 45% of tax payable on or before 15^th September
3. 75% of tax payable on or before 15^th December
4. 100% of tax payable on or before 15^th March

However, taxpayers opting for presumptive taxation scheme (section 44 AD) can choose to pay 100% of advance tax in one instalment on or before 15th March.

Penalty /interest for non-payment of advance tax:

234C: 1% p.m. or part of month for late payment

234B: 1% p.m. if 90% of tax is not paid in advance

Advance tax can be paid through challan no. 280.