Hey, I’ve started earning this year in July 2023 and this will be my first time paying taxes.
As per my income, I need to pay advance taxes and the due date was 15th December. I missed that somehow.
My query is following:
My work is on a contract basis with a foreign company so considering myself a freelancer I should go with ITR4 but I also hold some stocks and invest each month a part of my income in MF.
As correctly mentioned by @pothi, you can file ITR4 for the freelancing income earned by you. However, if you sell some shares, then you need to file ITR3.
For presumptive taxation, there is only one advance tax instalment applicable i.e. 15th March. So, you need to pay 100% of your advance tax on or before 15th March.
If a person adopts the presumptive taxation scheme of section 44ADA, then is he liable to pay advance tax in respect of income from profession covered under section 44ADA?
Any person opting for the presumptive taxation scheme under sections 44ADA is liable to pay whole amount of advance tax on or before 15th March of the previous year. If he fails to pay the advance tax by 15th march of previous year, he shall be liable to pay interest as per sections 234B and section 234C.
So, I think the conclusion is that if you’re opting for 44ADA (presumptive taxation) then you don’t have to pay advanced taxes every quarter even if your tax crosses Rs. 10000 per quarter.
I saw some references where they recommended to must pay tax in advance if the tax per quarter crosses Rs. 10000. Please correct me if my conclusion is wrong.
Yes, taxpayers opting for 44ADA must pay advance tax in one instalment during the March quarter. However, taxpayers can voluntarily pay advance taxes during the year to avoid the burden.
