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With Tuesday (March 15) being the last day for paying the advance tax, e-filing could come to your aid.
Software professional, Ashwin Kumaran, is planning to do the same. "My tax liability is Rs 50,000 for the assessment year. I just have a day left and I am not sure if my cheque will get cleared on the last day," says Kumaran.
Advance tax needs to be paid by all - individuals, consultants, businessmen and salaried. However, the liability to pay advance tax arises only if the tax payable after tax deducted at source (TDS) is more than Rs 10,000.
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You can pay the advance tax in four instalments through the year - June 15, September 15, December 15 and March 15.
For making an e-payment, you need a bank account with net-banking facility. It should also have the option for e-payment.
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To make the payment, visit the Income Tax Department's tax information network (TIN) website, established by the National Securities Depository Limited.
Next, select the challan number, which is ITNS 280 for self-employed and high net-worth individuals.Click NEXT to read on
Towards the end of the form, you need to fill the payment type. Write 100 for advance tax; it is also called 'minor head'.
Next, enter your bank name and proceed. Remember, you can make the tax payment through your designated banks only. To know if your bank provides this facility, you can check the list of banks on NSDL-TIN website, or check with your bank.Click NEXT to read on
"Those liable for a tax audit need to pay advance tax online. However, if you are not a professional or a company, you may pay it via cheque to your bank," says Amitabh Singh, tax partner, Ernst & Young.
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Individuals engaged in business with a gross receipt of over Rs 60 lakh (for assessment year 2011-12) and Rs 15 lakh for profession need a tax audit.
In such cases, a tax deduction account number of TAN would be needed.