What is advance tax? How do I know if I have to pay an advance tax?


#1

I want to know about advance tax.


#2

Advance tax means paying a part of your taxes before the end of a financial year. It is an estimation of total taxable income and payment of the incoem tax in equal parts in a financial year.Advance tax has to be paid in the year in which the income is received.

You will have to pay advance tax if your liability is more than Rs.10,000 within a financial year.