Any person in India, whose estimated tax
liability is more than Rs 10,000 (US$145) in a financial
year, after deducting TDS, must pay income tax in
advance.
Normally, for tax liability less than Rs 10,000 (US$145), the
income tax for a financial year is paid in the assessment year
(AY).
Under the advance tax method, tax liability is distributed in
installments within the same financial year. Therefore, an
'estimated tax' must be paid in installments throughout the
same financial year.
In simple terms, it is a 'pay as you earn' tax.
For example, for FY 2018-19 and FY 2019-20, the due dates for
advance tax (for both individuals and corporates) are:
- On or before June 15 – 15
percent of estimated advance tax;
