Eminent Advance Tax Pronouncements
The Direct Taxation system in India is one of its kinds and includes its fair share of interesting and complex provisions and sections to be reckoned with. The concept of Advance Tax being one such provision includes depositing tax on income in advance by estimating the projected earnings for the year and then paying taxes accordingly on time-bound intervals instead of lump sum payments at year-end. Section 208 of the Income Tax Act, 1961 includes the provisions pertaining to Advance Income Tax which stipulates that where total income tax liability is greater than INR 10,000 then tax is to be deposited under Challan 280 via online or offline mode with designated banks to the Income Tax Department. Interestingly, the concept of paying taxes online in India is on the rise as more than 85% of transactions are now done online. The concept of Advance tax has been helping both the government and the taxpayers as there is a lesser chance of default in tax payments and collections w