Delayed Advance Income Tax Will Have Interest Implications..

Reply by  Parizad Sirwalla, CA

Up to 30 % of estimated income tax liability is payable on or before 15 September of the financial year

 I work as a consultant and not a full-time employee, is advance tax applicable to me?

— Gaurav

 Parizad Sirwalla, CA

Advance tax is payable by an individual if the total tax liability on an estimated income (other than salary) is likely to exceed Rs.10,000 during the FY, after considering TDS.

Accordingly, the advance income tax would be payable by you if the estimated tax liability on envisaged fees from profession & other income exceeds Rs.10,000 during the relevant FY irrespective of your age as you are engaged in a profession.

In case of individuals, up to 30% of estimated income tax liability is payable on or before 15 September of the FY, up to 60 % is payable on or before 15 December and up to 100 % is payable on or before 15 March. Any delay in payment will have interest implications.

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