Advance Tax Due Dates For FY 2023-24

The following table help us to understand the due dates for payment of advance tax.

I. Payment of Advance Tax for all Assessees except for those opting for section 44AD or section 44ADA:

II. Payment of Advance Tax for all Assessees falling under section 44AD or section 44ADA:

Advance Tax is defined as an income tax paid on an estimated annual income to the government before the end of the financial year. The taxpayers estimate their total annual income for the financial year, calculate their tax liability based on this estimate, and make periodic payments of taxes. This means instead of paying a lump-sum tax amount at the end of a financial year, taxes are paid in installments on specific due dates decided by the tax authority.

Key takeaways from Advance Tax:

• Advance Tax is based on the principle of “Pay-as-you-earn”.
• In India, every person whose estimated tax liability for the year is ₹10,000 or more, shall pay “Advance Tax” [Section 208, Income Tax Act].
• A system of advance tax benefits both the government and the taxpayer. For the government, the advance tax system ensures a regular and timely inflow of revenue, and for taxpayers, it reduces the burden of paying lump-sum amounts at the end of a financial period.