The tax advance payment due date has arrived and taxpayers are due to pay the fourth advance tax installment for the 2021-22 fiscal year on Tuesday. If you are required to pay withholding tax, pay 100% of the withholding tax by March 15 to avoid interest.
Withholding tax is paid up front rather than a lump sum payment as part of normal income tax at the end of the year. Withholding tax is also known as income tax. It must be paid in installments according to the deadlines announced by the tax department.
WHAT IS ANTICIPATED TAX?
Usually the tax has to be paid when the income is earned in a fiscal year.
However, under the withholding tax provisions, the taxpayer must estimate the income for the entire year. Subsequently, based on the estimate, withholding tax is paid.
ANTICIPATED TAX CALCULATOR
Taxpayers should go to the official website of https://www. incometaxindia.gov.in/pages/tools/advance-tax-calculator.aspx.
You need to access the “Withholding tax calculator for the 2021-22 financial year”
You need to enter few details such as –
- Opt for taxation under section 115BAC?
- Net taxable income
- Income tax
- Cessation of education
- Cessation of secondary and higher education
- Full fiscal responsibility
- TDS/TCS/MAT (AMT) credit used
- Assessed tax
Finally, you must click on ‘Calculate’
ADVANCE PAYMENT OF TAXES ONLINE
Advance payment of taxes can be made through the online mode.
Taxpayers should visit the Department of Income Tax website – https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp.
Once you arrive, you can pay your withholding tax.
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