What is the procedure for computing advance tax?

Ans. Advance tax is liable to be paid in every case where the advance tax payable is Rs. 10,000 or more. A Resident Senior citizen not having any income from business/profession, is not liable to pay advance tax.

An assessee who opts for the presumptive taxation scheme under section​ 44AD and section 44ADA is required to pay advance tax related to such business. However, advance tax can be paid during the financial year (immediately preceding to the assessment year) on or before March 15.

The computation of advance tax can be done in the following manner:

Income from salaries	xxx
Income from house property	xxx
Income from Capital Gains	xxx
Income from Business or Profession	xxx
Income from other sources	xxx
Gross Total Income	xxx
Less: Deductions under sections 80C to 80U	xxx
Net Income	xxx
Income Tax on Net Income	xxx
Less: Rebate under section 87A	xxx
Balance	xxx
Add: Surcharge, if any	xxx
Total	xxx
Add: Health and Education Cess @4%	xxx
Total	xxx
Less: Relief under section 89, 90, 90A or 91	xxx
Less: Pre-paid taxes (i.e. advance tax, self -assessment tax, TDS, TCS, MAT/AMT credit)	xxx
Advance Tax Liability	xxx

(The Advance tax calculator is available on www.incometaxindia.gov.in)

Click here to calculate Advance Tax Liability