Advance Tax: The time to pay the third installment of advance tax is coming closer. The third installment of advance tax has to be paid by 15 December. This is a type of income tax, which is paid before the end of the financial year. It is deposited in four installments. 15 percent tax has to be paid by 15 June, 45 percent by 15 September, 75 percent by 15 December and 100 percent by 15 March. In case of not being able to pay the tax within the stipulated date, a penalty has to be paid.

You can deposit in both online and offline mode

You can deposit it either online or offline. For online payment, you will have to visit the official website of Income Tax, while in offline mode, you can pay tax by visiting the bank branch.

They have to pay advance tax

Advance tax is payable on a person's potential income. Those who earn taxable income of Rs 10,000 or more (after deducting TDS) in a financial year through job, freelancing or business have to pay advance tax.

Although the tax is paid in advance, it is calculated keeping in mind the income earned throughout the year. If your salary is taxable, then the company deducts TDS and deposits it with the government. Such people do not have to pay tax separately. 

Benefits of Advance Tax

There are many benefits of this. Since advance tax is deposited in installments, the government has a constant flow of money throughout the year. This strengthens the economy. The government does not have to unnecessarily spend the money required to work on a scheme. By paying advance tax, you contribute to the development of the country and this strengthens the creation of a developed India.