Advance tax is part payment of your tax liability before the end of a financial year. It is also known as pay as you earn scheme where income tax should be paid in the year when income is earned.
Any person with a tax liability of more than INR 10,000 in a financial year is required to pay advance tax on an instalment basis.
If TDS is deducted and deposited on your behalf, in that case, you are not required to pay advance tax.
You can pay Advance tax using:
- Online payment using Net banking facility
- Deposit in the bank with advance tax challan
If you fail to pay advance tax then a late-filing interest fee will be charged.