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 download a guide on making Advance Tax Payment online
Click here to calculate your Advance Tax Liability based on the Income for the year 2023-24
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