The Section 208 of the Income Tax Act, 1961 states that every person whose estimated liability for the year is more than or equal to ₹10,000 is liable to pay advance tax. In this article, you will be able to know Section 208 of the Income Tax Act, Advance Tax, Challan No. ITNS 280 and many more.
What is Advance Tax?
Advance tax is the income tax paid by the assesse in advance for the income earned in a particular financial year. Although, income tax is paid when the assesse earns the income. Still, Income Tax Department has a provision for advance tax, where the taxpayer has to estimate the income for the entire year.
As per Section 208 of the Income Tax Act, advance tax shall be payable during the financial year, if the estimated liability for the year is more than or equal to ₹10,000.
Forms Required in Advance Tax
The taxpayers are required to fill the form- Challan No. ITNS 280 on the prescribed due dates to pay advance tax. The Challan No. ITNS 280 consists of PAN Details, Assessment Year, Type of Payment for the taxpayers to process the advance tax under section 208.
Section 208- FAQs
Yes. An NRI is liable for payment of advance tax on the income earned in India.
A resident senior citizen of age equal to or more than 60 is not liable to pay advance tax.
In case you miss the dates of payment of advance tax, you will be levied interest under section 234B and 234C of the Income Tax Act.