Advance Tax Management Guide FY 2024-25
Advance tax is the income tax paid in advance instead of as a lump sum at the end of the year. It follows the "Pay as you Earn" scheme. If your total tax liability (after TDS) exceeds ₹10,000 in a financial year, you are legally required to pay advance tax.
Who Must Pay Advance Tax?
Contrary to popular belief, advance tax isn't just for business owners. It applies to:
- Freelancers: Since there is often no TDS on their total income, they must manage their own tax installments.
- Salaried Individuals: If you have high rental income or capital gains from stocks/mutual funds, your company TDS might not be enough.
- Investors: Dividend income and interest from FDs are significant sources where advance tax is often required.
The Installment Calendar
Failing to pay on time results in interest penalties under Section 234B and 234C. The schedule for 2024-25 is: 1. **15%** by 15th June 2. **45%** by 15th September 3. **75%** by 15th December 4. **100%** by 15th March
Old Regime vs New Regime in 2024
The New Tax Regime is now the default. It offers lower rates and a standard deduction of ₹50,000 for salaried individuals but removes most exemptions like 80C and 80D. Using our **Advance Tax Studio**, you can toggle between both to see which saves more money based on your specific investment profile.
Frequently Asked Questions (FAQ)
Resident senior citizens (60+) who do not have income from business or profession are exempt from paying advance tax.
You will be charged 1% simple interest per month under Section 234C for the period of delay in installment payment.
Financial Support?
For tax tool integration or feedback on FY 2024-25 logic, contact our fiscal team:
trendcart077@gmail.com