Architects Need to Pay Advance Tax
Architects Need to Pay Advance Tax Yes, architects in India are required to pay Advance Tax if their estimated tax liability for the financial year exceeds Rs 10,000.
Advance Tax is a system through which taxpayers are required to pay their income tax liabilities in installments during the financial year, rather than in a lump sum at the end.
This applies to various types of income, including professional income earned by architects.
Architects can estimate their annual income and calculate the tax payable on it. If the estimated tax liability for the year exceeds Rs 10,000, they need to pay Advance Tax in installments. The due dates for these installments generally spread across the financial year. Failure to pay Advance Tax on time can lead to interest penalties under Section 234B and 234C of the Income Tax Act.
The due dates for Advance Tax payment for individual taxpayers, including architects, are usually as follows:
- By June 15: At least 15% of the estimated tax liability.
- By September 15: At least 45% of the estimated tax liability.
- By December 15: At least 75% of the estimated tax liability.
- By March 15: The entire estimated tax liability.
Architects can adjust their Advance Tax payments based on their actual income and expenses during the year.
If they overestimate their tax liability and end up paying more Advance Tax than required, they can claim a refund when filing their annual income tax return.
In summary, architects in India need to pay Advance Tax if their estimated tax liability exceeds Rs 10,000 for the financial year. This ensures a steady collection of tax throughout the year and helps in avoiding interest penalties.
To visit: https://www.mca.gov.in/
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