Advance tax is the income tax payable if your tax liability exceeds INR 10,000 in a financial year and it should be paid in the year in which the income is earned. It is also called the ‘pay-as-you-earn’ scheme. It is required to be paid at quarterly intervals. The advance tax due dates for payment is on the 15th of each quarter-end.
There are two methods for payment of Advance Tax:
- Online via TIN NSDL.
- Offline via Bank Branch.
Steps for Online Payment of Advance Tax
- Aceess the TIN NSDSL e-payment Portal.
- Select the tax applicable and Payment Type.
Select the Tax Applicable as (0021) Income Tax (Other than Companies). Later select Type of payment as (100) Advance Tax.
- Select Mode of Payment and name of Bank.
Next, select the mode of payment from the different options and the name of your Bank.
- Enter the Details asked.
Enter PAN and Other Details including your email Id and contact number.
- Select the Assessment Year.
After selecting the Assessment Year, enter captcha and click on Proceed.
- Click on “Submit to the bank”.
Verify the details that were entered and Click Submit.
- Now you can login to the net banking account of your bank to make the payment.
Once you make the payment you will get challan counterfoil with Bank details. Save it for future reference.
Steps for payment of Advance Tax Offline
- Visit the bank branch and ask for the applicable tax payment challan form-Challan 280 (in this case).
- Fill in the details as required in the form. The details asked in the form are the same as required in the online form.
- Go to the relevant bank’s counter and submit the filled-in Challan 280 form along with the money. The tax payment can be made either in cash or cheque.
- Once you give the money and challan and the bank official will give you a receipt by tearing off a portion of the challan, filling in details of payment, and stamping it.
Once you have completed your advance tax payment by either the online or offline method, you should keep the receipts safely as proof of payment. It can approximately take up to 10 days to reflect in your Form 26AS. Your income tax payment should show in your Form 26AS Component ‘Part C – Details of Tax Paid’.
You can know details of Advance tax paid from your Form 26AS. Hence download Form 26AS from the income tax e-filing portal and show the same in your ITR.
In case your bank does not have an online payment facility or is not an authorized bank then you can make electronic payment of tax from the account of any other person who has an account with the authorized bank having online facility.
You should contact your Bank and ask for correction for double payment made for Advance tax.