Salaried with sizeable other incomes? Pay advance tax

NRIs with income in India above 10,000 must also pay this tax

- BINDISHA SARANG

The final deadline for paying the fourth instalment of advance tax for the assessment year 2024-25 is March 15. Advance tax on estimated income must be paid during the year in which it is earned, rather than as a lump sum at the time of filing your tax return.

"This system, known as the 'pay as you earn' approach, contrasts with the traditional lump sum payment at the fiscal year-end. It provides a structured and manageable way for individuals and businesses to meet their tax obligations," says Ritika Nayyar, partner, Singhania & Co.

At least 15 per cent of advance tax must be paid by June 15 of the financial year, 45 per cent by September 15,75 per cent by December 15, and 100 per cent by March 15.

Everyone (with some exceptions) whose estimated tax liability is 10,000 or more in a financial year must pay advance tax.

Presumptive scheme

Independent professionals like doctors, lawyers, and architects fall under the presumptive taxation scheme (Section 44ADA). They are not required to pay advance tax quarterly but by March 15 of the financial year.

Pallav Pradyumn Narang, partner, CNK, says, "If they earn other income, or any income not subject to withholding tax, they should pay advance tax quarterly for those incomes."