Advance tax collections for the period up to June 16 of FY25 have surged by 28 percent compared to the same period last year, totaling Rs 1.48 lakh crore, as reported by sources to business channel ET Now.
Corporate tax collections reached Rs 1.6 lakh crore, while personal income tax receipts amounted to Rs 3.79 lakh crore from April 1 to June 16, according to ET Now. Gross tax receipts for this period have reached Rs 5.15 lakh crore, reflecting a substantial year-on-year growth of 22.89 percent.
Advance tax is essentially tax paid before the end of the financial year, based on income earned during the same year. It is paid in installments—by June 15, September 15, December 15, and March 15—instead of a lump sum at year-end. Salaried individuals usually have tax deducted at source (TDS) by their employers, but they may also have other income sources like interest from deposits or capital gains, which factor into their advance tax calculations.
For self-employed individuals under the presumptive taxation scheme, advance tax is payable in one installment by March 15 of the financial year. This flexibility acknowledges the challenge small businesses face in estimating their tax liability early in the year.
Advance tax payments are mandatory for individuals whose net tax liability for the year exceeds Rs 10,000 after accounting for TDS. However, exemptions exist under certain circumstances, such as for senior citizens without business or professional income.
