Who is Liable to Pay Advance Tax? (A.Y. 2023-24)

Taxpayers are required to pay advance tax on their income which they expect to earn during the current year. For example, for the financial year 2022-23/the assessment year, 2023-24 advance tax is payable in instalments during 2022-23 itself.  All the persons whether the individual, firm, company or cooperative society will pay income tax in advance i.e. called advance tax. The tax is liable to pay in advance if the tax payable for the financial year is Rs.10,000 or more.  A senior citizen (i.e. who is 60 years of age or more) doesn’t need to pay advance tax if not have any income from business/profession. 

Who is Liable to Pay Advance Tax?

The following persons are liable/responsible to pay the advance date before its due date.

  1. All persons, including individuals, salaried persons whose tax during the financial year is more than Rs.10,000/- are liable to pay advance tax before due dates.
  2. Normally, in the case of salaried people, TDS has to be deducted by the employer on the salary earned during the financial year. However, if the employer goes wrong to do so or deducts less TDS, then salaried persons are also required to pay advance tax. However, if the income tax is less than Rs.10,000 after TDS subsequently no advance tax payment is required.
  3. Other persons that received an order u/s 210(3) are also required to pay advance tax as mentioned in that order. The instalments will furthermore be specified in the order. That person has also the option to pay higher advance tax if the estimated income is higher than the order. However, if the estimated income is lesser than the income specified in the order, then he must give the reply in form 28-A to deposit advance tax next instalment on a lower income.

Who is Not Liable to Pay Advance Tax?

  • Senior citizens (over 60 years during the previous year) not having any income from business or profession shall not be liable to pay any advance tax.

Hope you liked our article; we will cover other topics of advance in our next articles like how to deposit advance tax, penal interest on short payment of advance tax and examples related to it. We have covered all the questions related to the topic, i.e. persons that are required to advance tax. However, we know tax is only a topic that is very difficult to grasp for laymen because of amendments in the income tax act every year.

However, don’t worry you can ask your queries related to the topic “Who is required to pay advance Tax.” We will surely reply to your queries in the next 24 to 48 hours. We also request to the tax profession that, please share your suggestion, experience sections, examples, how-to, guidance, and practical experience related to the topic here.

13 thoughts on “Who is Liable to Pay Advance Tax? (A.Y. 2023-24)”

  1. my salary for the year 2015-16 would be 740000 and my employer will deduct tds.my income from other souces will be near abt 5000(from fixed depoists).can i fill advance tax because i didnot declare to the deptt regarding income from other sources in my declaration form submitted to deptt .now can i pay advance tax?

  2. if i have paid excess fund in advce tax payment or TDS payment, what is the process for get refund that excess fund from income tax dept .

    • File a income tax return promptly before 31 st July you wil get a refund of excess tax paid by you from IT department.

  3. Please clarify on who should file IT return for FY 2014-15. For example, current limit is 2.5 lacs for filing and an individual’s income fluctuats in a period of 10 years, does he need to file return every year even the income goes below the base limit of 2.5 lacs for 3 years in between.

  4. I would like to be clarified whether a senior citizen who does’t have any income from business is exempted from paying penalty(Interest @ 1% pm) even if the tax due is paid after 31st March but before 31st july i.e before due date for filing of Tax return?

    • I think you are right. Senior citizens who do not have any business income need not pay advance tax irrespective whether TDS is deducted or not. However they should pay the same by 31st July to avoid paying interest for default.

  5. as per books of account in my profit & loss there is net loss but sales income is high then i m liable to pay advance tax?

    • From FY 2012-13m Sr Citizens who have no Business Income need not pay Adv Tax, if TDS has been deducted by their employer from their salary / pension income. Business Income people have to pay Adv Tax.

  6. Payment of AD Tax payable on 15 june than calculation of incom is from 01.4.2012 to 15.06.2012 andthan in next installment of 2 qtr how to calculate ad tax and on whic period


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