As of June 15 of the current financial year, the government has collected Rs 1.48 lakh crore in advance tax. This represents a 27.6 per cent increase compared to the same period last year, driven by economic growth and strong corporate performance.

The breakdown of this collection includes Rs 1.14 lakh crore from corporate tax and Rs 34,362 crore from personal income tax. In the previous financial year, from April 1 to June 15, Rs 1.16 lakh crore was collected, comprising Rs 92,172 crore in corporate tax and Rs 23,513 crore in personal income tax.

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The Income Tax Department has issued refunds amounting to Rs 53,140 crore by June 15, compared to Rs 39,390 crore during the same period last year. For the financial year 2023-24, the government has collected Rs 19.58 lakh crore in direct taxes, marking a 17.1 percent increase over the previous year. This exceeds expectations by Rs 13,000 crore. The government has set a target of Rs 21.99 lakh crore in direct taxes for the current financial year.

Who Should Pay Advance Tax?

Section 208 of the Income Tax Act mandates the payment of advance tax if the tax liability for a financial year is Rs 10,000 or more. This applies to income sources other than salary. Self-employed individuals, professionals, and business owners are required to pay advance tax. 

It also applies to profits from shares, fixed deposit interest, rental income, etc. Individuals over the age of 60 are exempt from paying advance tax.

Advance tax payments are due in instalments on June 15, September 15, December 15, and March 15 of the respective financial year. Failure to pay within these dates results in a penalty of one percent per month under Section 234.

How to Pay Advance Tax Online?

To pay advance tax online, follow these steps:

Step 1: Visit the e-Filing Portal: Go to the official e-filing portal of the Income Tax Department (CLICK HERE).  

Step 2: Access Quick Links: On the left side of the home page, find the 'Quick Links' section and click on the 'E-Pay Tax' option.

Step 3: Enter PAN Details: Input your PAN and re-enter it to confirm. Enter your mobile number and click 'Continue'.

Step 4: OTP Verification: Enter the 6-digit OTP received on your mobile number and click 'Continue'.

Step 5: Select Tax Type: Choose the first box labeled 'Income Tax' and click 'Proceed'.

Step 6: Assessment Year and Payment Type: Select 'Assessment Year' as 2025-26 and 'Type of Payment' as 'Advance Tax (100)', then click 'Continue'.

Step 7: Enter Tax Details: Fill in all required tax details.

Step 8: Choose Payment Method: Select your payment method and bank, then click 'Continue'.

Step 9: Preview and Pay: Review the challan details and click on 'Pay Now'. If needed, you can 'Edit' the details.

Step 10: Acknowledgment: After completing the payment, you will receive an acknowledgment on the next screen. On the right side of the challan, you will see the BSR code and challan serial number. Save a copy of this tax receipt for future reference, as you will need to enter the BSR code and challan number in your tax return.