If you are a salaried individual or self-employed and have taxable income, you are required to pay advance tax in India. Advance tax is the tax that is paid in advance to the Income Tax Department in the same financial year in which the income is earned. Here is a step-by-step guide on how to pay advance tax in India:

Step 1: Estimate your taxable income for the current financial year. This can be done by taking into account all sources of income, such as salary, rental income, and income from investments.

Step 2: Calculate the tax liability on your estimated income using the income tax slab rates for the current financial year. The income tax slab rates for the financial year 2021-22 are as follows:

• Up to Rs. 2.5 lakh – Nil
• Rs. 2.5 lakh to Rs. 5 lakh – 5%
• Rs. 5 lakh to Rs. 7.5 lakh – 10%
• Rs. 7.5 lakh to Rs. 10 lakh – 15%
• Rs. 10 lakh to Rs. 12.5 lakh – 20%
• Rs. 12.5 lakh to Rs. 15 lakh – 25%
• Above Rs. 15 lakh – 30%

Step 3: Deduct the tax that has already been deducted at source (TDS) from your estimated tax liability. TDS is the tax that is deducted by your employer or any other entity that makes payments to you, such as banks or tenants.

Step 4: If the balance tax liability is Rs. 10,000 or more, you are required to pay advance tax. You can pay the tax online through the official website of the Income Tax Department or offline at designated banks.

Step 5: To pay the tax online, visit the official website of the Income Tax Department and select the “e-Pay taxes” option. Choose the relevant form for advance tax payment and fill in the required details, such as your PAN, name, and address.

Step 6: Select the mode of payment, such as internet banking, credit/debit card, or direct debit, and make the payment.

Step 7: After making the payment, you will receive an acknowledgement that contains the details of the payment. You can keep this acknowledgement for future reference.

In conclusion, paying advance tax is a requirement for individuals with taxable income in India. By following the steps mentioned above, you can calculate and pay your advance tax online or offline. It is important to pay the tax on time to avoid any penalties or interest charges.