Yes. The applicable interest would be added to your tax dues when you file the Income Tax Return. You will have to pay the total tax dues including interest amount in form of Self Assessment Tax before you file the Income Tax Return.
last installment of advance tax which is paid on or before 15th March.
do we have to select advance tax or assessment tax while paying 4th installment.
and interest on shortfall of advance tax is paid with 4th installment or assessment tax.
last date is over. Now whatever you are paying you should pay it in the name of Self Assessment Tax.
I m talking about this financial year.
I’m not able to understand. I replied to your question. When the time of advance tax is finished whatever tax you pay in any form is called as Self Assessment Tax (Simply its Tax Paid other than advance Tax)
He is taking about FY23 from what I understand. In that case it wont be 4th installment. It will be the first one for this year.
Thats what I don’t understand. Why he is asking about 4th installment, interest
when you pay tax online you have two option advance tax and self assessment tax. right?
I want to know when we pay tax on 15th march do we have to select advance tax or self assessment tax?
Advance tax
Advance tax is the amount of income tax that is paid much in advance rather than a lump-sum payment at the year-end. Also known as earn tax, advance tax is to be paid in installments as per the due dates decided by the income tax department.
As per section 208 of the Income Tax Act 1961, every person whose estimated tax liability for the year is more than or equal to `10,000 is liable to pay advance tax.
Advance tax varies with the due dates.The due dates are as follows-
•On or before 15th June – 15% of the annaual tax liability
•On or before 15th September – 45% of the annual tax liability
•On or before 15th December – 75% of annual tax liability
•On or before 15th March – 100% of annual tax liability
If you miss the dates for payment of advance tax you will be levied interest under section 234B and 234C of the Income tax Act.
Tax paid during the financial year is called Advance Tax while tax paid after end of financial year but before filing of the Income Tax Return is called Self Assessment Tax. Thus, if you’re paying the last installment during the financial year, you must select Advance Tax.
If the advance tax paid is less than 90% of the actual tax liability, the interest on shortfall of advance tax is to paid under Section 234B as self assessment tax.
You can read more about it here - Section 234B of Income Tax Act : Interest for Non-Payment of Advance Tax
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@Quicko I have no tax liability in FnO and intraday but have a gain in equity delivery(stcg) more than 10l. But the quicko portal says advance tax is 0. So, is STCG exempt from paying advance tax?
Hey @sachin_tiwari,
Advance Tax needs to be calculated after considering all sources of income, deductions and any taxes that you have already paid throughout the year. Therefore, to calculate advance tax liability on Quicko, you need to add all of these details on the ‘New v/s old regime’ feature on the Planning Tab to calculate advance tax liability.
Here’s a guide for you: Calculate Advance Tax on Quicko