You must be aware that we are required to pay income tax every financial year. But did you know that you can pay taxes in instalments throughout the year? This is what we call Advance Tax. Think of it as paying your income tax in EMI-like instalments.
Let’s understand it better with an easy-to-follow infographic:
Wrapping Up
Paying Advance Tax is not just a government rule; it’s a financially prudent decision. It not only reduces the worry of paying a large tax amount at the end of the year but also ensures timely revenue for the government. So, if all your income sources together make your tax liability exceed Rs 10,000 in a financial year, you can benefit from the Advance Tax system and pay your taxes like easy EMIs.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
