Daily Tip: The third instalment of advance tax for AY 2022-2023 is due soon

advance tax

The deadline to pay the third instalment of advance tax for Assessment Year 2022-2023 is 15 December 2021. 

If you’ve never heard of advance tax, you’re not alone. Many taxpayers have not. Section 208 of the Income Tax Act, 1961 states anybody whose estimated tax liability for the year is more than or equal to Rs. 10,000 is liable to pay their taxes in advance. 

So, paying your taxes ahead of time simply means paying them as you earn your income so that you don’t owe the income tax department a big lump sum when the financial year ends. By 15 December, you need to pay 75% of your tax liability for the 2022-2023 assessment year. 

Use the Income Tax Department’s advance tax calculator to learn how much you advance you may owe.

Learn more about Advance Taxes here.

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