Only 2 Days Remaining for Advance Tax

Advance Tax is a way to pay taxes in installments and the last installment being on 15th March. For example, if your tax liability is above Rs 10K then it's better to pay the advance tax. The common question is that as a Salaried Individual do you need to pay the advance tax. Yes you have to pay.

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The thing is you might be doing trading, some interest from the deposits as well as dividend income. If all of them combined is above Rs 10K. It's better to pay the advance tax. If you are not paying the advance tax then you have to pay a penalty which is around 1% per month. So if your liability is Rs 10K then every month you have to pay Rs 100 extra. As a Salaried Individual we are paying the incomr tax to the government as a quarterly manner but the extra income which you have got has to be paid too.

Even if you don't know your actual tax amount, you pay as a estimate that will save you some money. Because anyway you have yo pay either before 15th March or at the time of filing the tax. Now if your tax is mainly from the stock market, then you cab try to do tax loss Harvesting, in that way your tax liability gets decrease. You can pay the advance tax using the credit card which is again the added benefit. For example, you have to pay some percentage like 0.7 to 0.9 as c9nvinience charge but if you are getting more rewards than that, then it's good only.

So I am also paying the advance tax tomorrow with my credit card and get some returns and if it's more, I will get the returns back at the actual time of filing.