. Advance Tax Calculator And Guide

(As amended by Finance Act, 2017)

Advance Tax Calculator for Financial Year 2017-18

Advance Tax Calculator

My additional income tax liability is more than INR 10,000 and I am not a senior citizen. Paying advance tax is a hassle for me. I don’t even want to pay penal interest for non-payment of Advance Tax. Is there any way I can avoid paying Advance Income Tax?

You can avoid paying Advance Income Tax if you report the additional income to the payroll department of your employer organisation in which case, the income tax on additional income would be deducted by the employer from your salary. However, while reporting the additional income with the employer, ensure that the amount reported is adjusted for the TDS on such income.

Additional Income (in the form of interest on fixed deposit) Tax Rate as per Highest Tax Slab Tax if already deducted
Rs.1,00,000 35.54% 10% (Bank TDS)

Now, Total payable tax on Additional income of Rs.1,00,000 = Rs.35,540

TDS deducted by Bank = Rs.10,000

Net payable tax = Rs.25,540

If you decide to report this additional income with the employer organisation, it would deduct income tax @ 35.54%. This would result in total TDS of 45.54% on the interest income. Hence, you will have to claim a refund at the time of tax filing. To avoid this, you may report additional income of only Rs.71,863 (instead of Rs.1,00,000) so that the total TDS on the income of Rs.1,00,000 equals the amount of income tax thereon.

Amount to be declared with the employer organisation as an additional income =1,00,000 *25.54/35.54 = 71,863 (rounded off)

If you declare this income, your taxes will be deducted by your employer as 71,863 x 35.54% = Rs 25,540.

How much Advance Tax am I required to pay by 15 September, 2017?

You are required to pay 45% of the Income Tax as Advance Tax by 15 September, 2017.

For example: Additional Income (Interest from Fixed Deposit) is Rs. 1,00,000

You fall under the tax slab of 30%

Total tax payable on additional income is (Rs.1,00,000 *35.54%) = Rs.35,540

TDS deducted by bank @ 10% is Rs.10,000

Net payable tax is total tax less TDS i.e. Rs.35,540 – Rs.10,000 = Rs.25,540

This net payable tax is supposed to be paid in 4 Quarters as mentioned in the below table:

Quarters Due Date Tax Percentage Total Tax Due Tax to be paid in each Quarter
1st Quarter 15 June 2017 15% 3,831 3,831
2nd Quarter 15 September 2017 45% 11,493 7,662
3rd Quarter 15 December 2017 75% 19,155 7,662
4th Quarter 15 March 2018 100% 25,540 6,385

Hence, by 15 September, 2017 you are required to pay Rs.7,662.

Frequently Asked Questions FAQs

What will happen if I fail to pay Advance Tax?

In case you fail to pay Advance Tax or pay less tax than required, then you will have to pay interest and penalty under section 234C & 234B respectively of the Income Tax Act, 1961.

How can I know that I have already paid the Advance Tax?

If you have already paid the Advance Tax then it will reflect on your form 26AS within 2 to 3 days of making the payment.

If I am a resident senior citizen, will I be liable to pay advance tax?

According to section 208, a taxpayer, whose taxation liability exceeds Rs.10,000 for the previous year is liable to pay Advance Tax. However, according to section 207, a taxpayer is not liable to pay Advance Tax if such person satisfies the following conditions:

  • The person is an individual
  • The person is resident in India as per the Income Tax Act
  • The person is of the age of 60 years or above
  • The person is not having any income chargeable to tax under the head ‘Profit and gains of business and profession’

Is exemption from payment of advance tax for resident senior citizens under section 207 applicable to Hindu Undivided Families (HUFs)?

Only individual senior citizens can enjoy exemption from the payment of advance tax under section 207. Hence, HUFs are liable to pay Advance Tax.

Disclaimer: H&R Block has developed the Tax Calculator as a tool to provide the user with information about their overall, annual tax liability. The Tax Calculator is a tax estimator tool only and should only be used to calculate an individual’s estimated total tax liability. The Tax Calculator is not intended to serve as an online tax preparation tool for Income Tax Returns, or any other return; any other use is strictly prohibited. In the event the user intends to procure H&R Block’s tax filing services or any other services, they could obtain the same by accepting the applicable terms and conditions. H&R Block and its officers, employees or representatives disclaim any and all representations, warranties or guarantees and assume no responsibility or liability for any damages arising out of the use of, reference to or reliance on the Tax Calculator.