Question

State the rules relating to advance payment of tax

Answer 1

The advance tax requirement says that if the amount of tax that has to be paid is Rs 10,000 or more during the year then a person has to pay advance tax. This means that they have to ensure that by September, December and March 15 they have deposited a certain percentage of their total tax with the government in the form of advance tax. This entire process requires making a rough calculation about the income that will be earned during the year and then making the required payment based on a specific percentage of this figure with the government. Since this requires quite some effort there is a provision whereby senior citizens need not pay the advance tax and this frees them from following these lengthy requirements.