Advance income tax is payment made beforehand rather than at the end of the financial year. It is to be paid in instalments as per the due dates notified by the income tax department. It is also known as ‘pay as you earn’ and needs to be paid in the same year of earnings.
In today’s busy lifestyle, you can avail yourself of online payment options to avoid last-minute hassles. Advance income tax also helps mitigate stress that a taxpayer might undergo during tax payments at the end of the financial year; paying advance tax helps one as it does not involve shelling out taxes in a lump sum at the end of the financial year.
If you’re wondering how to pay advance tax online, we will explore a stepwise process of how you can go about it.
Steps to Pay Advance Tax Online
Let us go through the steps and clarify how to make advance tax payments online for your quick reference.
- Step 1: Go to the e-filing portal of the Income Tax Department of India.
- Step 2: Go to the ‘Quick Links’ section on the home page and click the ‘e-pay tax’ option. Taxpayers can also search ‘e-pay tax’ in the search box.
- Step 3: On the next page, insert your PAN and re-enter to confirm it. Then, type your mobile number and click ‘continue.’
- Step 4: You will receive a 6-digit OTP on your registered mobile number. Enter the OTP and ‘continue.’
- Step 5: Select the first box labelled as ‘Income Tax’ and click on ‘Proceed.’
- Step 6: Go to the ‘Assessment Year’ as 2024-25, select ‘Type of Payment’ as “Advance Tax (100)’ and click on ‘Continue.’
- Step 7: Enter tax details in the next screen.
- Step 8: Select your desired payment bank and click on ‘Continue.’
- Step 9: You can preview the challan details and click ‘Pay Now’. You may also ‘Edit’ your shared details if required.
This is how to make advance tax payments online through a few easy steps. Once payment is made, you will receive an acknowledgement on the next screen. Check the challan serial number and the BSR code on the right side of the advance tax payment challan. You will need these details while filing your income tax return and future references related to tax issues.