Advance Tax 1st Instalment Due on June 2023: Importance and Consequences
Advance tax is a key aspect of income tax in India, requiring taxpayers to pay estimated tax liability in installments. The first instalment for the financial year 2023-24 is due in June 2023. Non-payment has significant repercussions. Let’s explore the importance of timely payment and the consequences of non-payment.
Importance of Timely Payment:
- Compliance: Paying advance tax on time ensures adherence to tax laws and demonstrates responsible tax behavior.
- Avoiding Penalties: Timely payment helps avoid interest and penalties for delayed or insufficient payments.
- Financial Planning: Advance tax payment allows for effective financial planning and smoother cash flow throughout the year.
- Peace of Mind: Prompt payment relieves the burden of accumulating a large tax liability towards year-end.
Consequences of Non-Payment:
- Interest and Penalties: Non-payment or underpayment attracts interest and penalties, increasing the tax liability.
- Cash Flow Issues: Delayed payment causes cash flow problems, impacting day-to-day operations.
- Increased Scrutiny: Non-payment raises scrutiny by tax authorities, leading to audits and inquiries.
- Legal Consequences: Persistent non-payment can result in legal actions, including tax recovery and prosecution for tax evasion.
Timely payment of the first instalment of advance tax for the year 2023-24 in June 2023 is crucial. It ensures compliance, avoids penalties, aids financial planning, and provides peace of mind. Non-payment leads to interest, penalties, cash flow issues, increased scrutiny, and potential legal consequences. Stay proactive, fulfill your tax obligations, and contribute to the nation’s progress.
Click here to calculate your Advance Tax Liability based on the Income for the year 2023-24
If you have any queries or require support in your Advance Tax calculation, Send us an Enquiry