In India, every earning member is responsible for assessing the expected tax liability and pay it to Government as per taxation rules. According to one of the clauses of income tax, assessee has to pay advance tax considering the expected tax liability which may arise at the end of current financial year. If advance tax is not paid on time, interest on the amount will be leviable at the rate of 1% per month.
This advance tax amount is calculated based on projected income in the entire current financial year, after considering all permissible deductions under various sections.
Expected Advance Payment
| Due Date | Proportion of total estimated tax |
|---|---|
| 15th June | 15% |
| 15th September | 45% |
| 15th December | 75% |
| 15th March | 100% |
| 31st March | Entire tax payment per actual |
Verify Tax Deducted by Employer
Once you have checked how much tax should have been paid, you can cross verify the deductions or TDS made by your employer on TRACES website following these steps-
Step 1
Open TRACES website and navigate to login page. Choose Taxpayer/PAO as login type.
Step 2
Login with your details. Your PAN is the user Id for this portal. If not already registered, you can register and then proceed.
Step 3
After login, if you see any popup, click on agree checkbox and then Proceed button. Now, from the main menu navigate to view form 26AS
Step 4
Choose appropriate Assessment Year and HTML in the View As dropdown. For example, if I have to check deductions made from April 2018 to March 2019, I should choose 2019-20 as the assessment year. Click on view button
Step 5
Scroll down to Part A of the form. It will have all the details of tax deducted from source. Click on the + button in left top corner to expand the transaction details along with total amount paid, tax deducted and TDS deposited to Government.
What if Advance Tax is not Matching?
If in any of the quarter, advance tax is not paid or paid less than the net tax liability, simple interest at the rate of 1% per month shall be payable. If you are a salaried person, most likely your employer has already taken care of it. Else, if you have income from multiple sources, consider consulting your financial advisor.