Paying your taxes and filing your returns on time can spare you a lot of hassles that come with being a taxpayer.
If your tax liability is more than Rs 10,000, you are liable to pay it in instalments (known as advance tax) throughout the year. If your employer, bank or other entity is deducting TDS, you can consider this in your calculation of the advance tax due. Here are the dates and time limits you should note:
|Date||Why it matters|
|April 1st||This is the beginning of the financial year in India|
|June 15th||You have to pay the first instalment of advance tax by this date. This instalment is 15% of the tax you estimate to pay.|
|July 31st||This is the date by which individual taxpayers must file their return for the previous financial year (ending on March 31st).|
|September 15th||You have to pay the second instalment of advance tax (45% of estimated tax) by this date|
|December 15th||You have to pay the third instalment of advance tax (75% of estimated tax) by this date|
|March 15th||You have to pay the balance amount of advance tax by this date|
|March 31st||This is the end of the financial year. You must make your tax-saving investments by this date such as PPF, NPS and ELSS. If any tax is due from you which you have not paid as advance tax, you must pay it by this date|
Apart from tax payment dates, there are also return filing dates. This is 31st July for the financial year ending on 31st March. For instance, for FY 2016-17, your return must be filed by July 31st, 2017. If you file your return after this deadline it becomes a ‘belated return’ and you have to pay simple interest at 1% per month on the tax due.