Remember to pay your Advance tax

Remember to pay your Advance tax by Today, June 15!

If you are a salaried employee, you might think your employer already deducts TDS for you.

However, in case you have some other income which you haven’t disclosed to your employer, e.g. interest income, rental income, etc., the TDS for that income won’t be deducted, and you might still have to pay advance tax.

If the tax liability apart from salaried income is more than ₹10000, you have to pay advance tax to the government.

There are 4 months during which you need to pay this tax June, September, December and March. For June, you will start by paying 15% of the amount.

Suppose you don’t pay advance tax. You pay a penalty of 1% per month for three months on the unpaid advance tax.

The catch is that even if you pay on June 16(or any day before September 15, which is the next date for advance tax), you still pay interest for the three months (June 15- September 15).

That means that even if you miss the advance tax deadline by even one day, you pay the penalty for all three months. So do not forget to pay advance tax.

I have added a table below for reference to help understand how your advance taxes need to be paid.