When are you Liable to Pay Advance Tax?
1. If your estimated tax liability is more than Rs. 10,000/- and
2. No TDS was done by your Employer or your Service Receiver.
Note: If you are a senior citizen (more than 60 years of age during the last financial year) and you are not receiving any “Income from Business or Profession” then irrespective of your tax liability you are not liable to pay advance tax.
If your expected tax liability is around Rs. 15,000/- and Your employer did not deduct tax at source for some reason then you are liable to pay your Advance Tax in 3 Installments (Individual).
When are you not liable to pay Advance Tax?
1. If your estimated tax liability is less than Rs. 10,000/- then you are straight away not liable to pay advance tax.
2. Even if your Estimated Tax Liability is more than Rs. 10,000/- but your Employer or your Service Provider deducted tax at source and there is no tax liability after deducting TDS amount from your estimated final tax liability, even in such cases you are not liable to pay advance tax.
If Your Tax Liability is Rs. 20,000/- but your employer had already deducted tax at source of Rs. 20,000/- then it is obvious that you need not pay Advance Tax.