Advance Tax Liability on Freelancer Consultant in India

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  1. Singla

    Singla New Member

    Hi All,

    I am individual free lancer consultant working for a company. I want to understand the advance tax payment and interest calculation in case I don't pay it on due dates. For example I haven't paid the advance tac on 15th Sep cycle. My annual earning is around 15 L . Please advise how much advance tax I have to pay in each cycle and how this all work.

  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    If your annual earning is Rs. 15 Lakhs, your total income tax liability during the year would first be required to be computed as per the income tax slab rates.

    Your tax liability computed as per Income Tax Slab Rates would be around Rs. 2.25 Lakhs. (For manner of computation, kindly refer -

    Now, this Rs. 2.25 Lakhs should be paid by you as Advance Tax in Installments i.e.

    30% of Rs. 2.25L i.e. Rs 67500 before 15 Sept
    60% of Rs. 2.25L i.e. Rs. 1,35,000 before 15 Dec
    100% of Rs. 2.25L i.e. Rs. 2,25,000 before 15 Mar
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    If TDS is also deducted in your case - then it will reduce your advance tax liability.

    In such a case the advance tax liability would be reduced by the TDS Deducted and only the balance would be required to be paid by you.
  4. Singla

    Singla New Member

    Thanks Gaurav for reply . I have another question if I am failed to pay advance tax in september and december but pay the complete tax lets say by Apr 30 , 2015. Am i liable to pay interest from september or it will be calculated only from March to April for 1 month. Please let me know.
  5. johnbuchmiller

    johnbuchmiller New Member

    Yes, absolutely. Not paying tax is a crime as per government rule and you might have to face severe penalty if the IT department raises a scrutiny against your Income Tax Filing. So file your Income Tax on time. Moreover nowadays with all payments being tracked against the PAN number issued, there is no escaping.Contact good Tax Lawyer is good solution.
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