Advance Tax for Lawyer
Advance Tax for Lawyer Yes, a lawyer may need to pay Advance Tax depending on their income and tax liability.
It is a system in which individuals required to pay their taxes in installments during the financial year itself, rather than making a lump-sum payment at the end of the year.
This is particularly relevant for professionals, including lawyers, who earn income that isn’t subject to tax deduction at source (TDS), such as fees received directly from clients.
If a lawyer’s estimated tax liability for the financial year exceeds ₹10,000, they can requir to pay Advance Tax.
They need to estimate their total income for the year, calculate the tax liability on that income, and then pay it in installments according to the specified due dates.
These due dates are usually in June, September, December, and March. By the end of the financial year, the Advance Tax paid is offset against the total tax liability when filing the income tax return.
Taxation for Lawyers: It’s important for lawyers to ensure that they accurately estimate their income and tax liability to avoid any interest or penalty for underpayment of Advance Tax.
If their income varies significantly, they should adjust their Advance Tax payments accordingly in subsequent installments.
To visit: https://www.mca.gov.in/
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