TheTaxHeaven Dictionary - Know the meaning of tax

Advance Tax

Advance tax, also known as pay tax as you earn, is a type of income tax that is paid in advance during the financial year. This helps taxpayers avoid having to pay a lump sum at the end of the year. Advance tax is required to be paid if your estimated total tax liability [after TDS] is Rs 10,000 or more in a financial year.

Advance tax payments must be made in four instalments according to the due dates set by the Income Tax Department.

Advance tax applies to all taxpayers, regardless of their profession. This includes salaried employees, freelancers, and businessmen. However, senior citizens who are 60 years or older and do not run a business are exempt from paying advance tax.

How to pay advance tax: