Second instalment of Advance Income Tax due on 15th September

The second instalment of advance tax for financial year 2018-19 is due on 15 September. Assessees falling under the ambit of advance tax payment are required to pay 45% of the evaluated tax liability. Here is how to estimate and pay advance tax.

Section 208 of the Income Tax Act, 1961, makes it obligatory for individual assessees to evaluate their expected annual income, and if tax on such income exceeds 10,000, to pay advance tax. While estimating the income, take into consideration income under all the five sources of incomes heads—income from salary, business and profession, house property, capital gains and income from other sources. Senior citizens (above 60 years of age) not having income from business or profession are not required to pay advance tax.

There are four advance tax instalment dates. The first instalment becomes due on or before 15 June, by when 15% of the evaluated total tax should be paid. The second instalment becomes due on 15 September by when 45% of the estimated tax should be paid off. The next due date is 15 December by when 75% of the tax should be paid and by the last due date of 15 March, the entire tax liability needs to be cleared.