Artist Need to Pay Advance Tax
Yes, artists may need to pay Advance Tax depending on their projected income for the financial year. Advance Tax is a system in which taxpayers are required to pay their taxes in installments during the year, rather than in a lump sum at the end. This is especially applicable if their tax liability is expect to be more than ₹10,000 in a financial year.
For artists, including those involved in visual arts, performing arts, or any creative endeavor, their income might not always be consistent throughout the year.
It could come from various sources such as exhibitions, performances, sale of artworks, workshops, or even royalties. Since their income can be irregular, they might find it challenging to estimate their exact tax liability accurately by the end of the year.
In such cases, artists should consider paying Advance Tax in three installments: The due dates for the advance tax installments are:
- 15th June: 30% of the estimated tax liability for the year
- 15th September: 30% of the estimated tax liability for the year
- 15th December: 25% of the estimated tax liability for the year
- 15th March: 25% of the estimated tax liability for the year
Artists can estimate their expected income for the year and calculate the tax payable based on the applicable tax slab.
Failing to pay Advance Tax when required can lead to penalties and interest.
However, artists can adjust any excess payment of Advance Tax against their final tax liability when filing their income tax return.
This way, they ensure that they are not overpaying taxes.
In summary, artists should assess their projected income for the year and if it’s likely to exceed the threshold.
They should consider paying Advance Tax in installments to avoid penalties and manage their tax liability more effectively.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com
