Engineer Pay Advance Tax
Yes, Engineer can pay advance tax, like any other professionals or individuals, may need to pay Advance Tax depending on their income and tax liability.
Advance Tax is a system of paying income tax in installments throughout the financial year, rather than paying it all at once during the end of the year.
It is applicable when an individual’s total tax liability is expected to be Rs. 10,000 or more for the financial year.
Here’s how it works:
1. Income Assessment:
Engineers need to estimate their total income for the financial year, including their salary, consulting fees, and any other sources of income.
This estimation should consider their deductions and exemptions as well.
2. Calculation of Tax Liability:
Once the estimated total income is determined, engineers should calculate their tax liability based on the applicable income tax slabs and rates.
This will give them an idea of how much tax they need to pay for the year.
3. Due Dates for Installments:
Advance Tax is paid in installments during the financial year. The due dates for these installments are generally as follows:
- On or before 15th June: At least 15% of the estimated tax liability.
- On or before 15th September: At least 45% of the estimated tax liability.
- On or before 15th December: At least 75% of the estimated tax liability.
- On or before 15th March: 100% of the estimated tax liability.
4. Payment Process:
Engineers can make the Advance Tax payments online through the Income Tax Department’s website or at designated bank branches. They need to fill out Challan 280 and select the appropriate codes for Advance Tax payment.
5. Consequences of Non-Payment:
Failure to pay Advance Tax or underpayment of Advance Tax might lead to interest under Section 234B and Section 234C of the Income Tax Act.
These sections impose interest for underpayment or late payment of Advance Tax.
If an ITR filling for engineers estimated tax liability for the financial year is Rs. 10,000 or more, they should consider paying Advance Tax in installments to avoid penalties and interest. It’s essential to accurately estimate income and tax liability to ensure compliance with tax regulations.
To visit: https://www.incometax.gov.in
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