In this post, we will see the process of entering Advance tax details and its working for Income Tax computation in Saral Income Tax.
To begin with, Advance Tax as the name refers is paying a part of your yearly tax in advance. This is applicable if your yearly tax liability crosses Rs. 10,000. You should pay advance tax in the year in which you receive the income. Hence, it is also known as the ‘pay-as-you-earn’ scheme.
You have to make these payments in installments as per due dates provided by the income tax department.
The due dates for Advance Tax payment with payable percentage are available in a previous blog post. It can be found here – Advance Tax Due Dates.
In Saral Income Tax, after computing Tax liability of the assessee, the pre-paid tax details are to be entered to reduce the Interest u/s 234C (if applicable) & Net Tax Payable. Advance Tax is one such entry.
You can manually enter advance tax details or you can also import it from Form 26AS details.
Note:
For Form 26AS import process, visit our post, Download & Import Form 26AS.
Firstly, to enter the details manually, go to Tax Meter of the Assessee and click on Advance Tax under Prepaid Tax.
In the Advance Tax screen, the estimated tax payable as per the payment percentage will be displayed.
Assessee may consider this amount for payment of tax or if already paid, enter the challan details in this screen.
Secondly, to make payment of tax from the software, click on e-payment option which will lead to e-payment gateway of income tax (ITNS 280).
Finally, on entering the tax paid details, the Interest u/s 234C (if applicable) & Net Tax Payable will be auto recalculated and the tax meter will be updated with the tax paid amount.
This completes the process of Advance Tax entry in Saral Income Tax.