Advance income tax: Meaning and Definition

What does advance income tax mean?

Advance income tax is another name for Advance Tax. Advance tax is the income tax paid in instalments during the financial year in which the income is earned, rather than as a lump sum at year-end, as mandated by the Income Tax Act.

The two names mean the same thing. You will see "advance income tax" in some ledgers, reports and contracts and "Advance Tax" in others. The full entry covers how it works, with examples.

Read the full definition of Advance Tax

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Due dates and calendars

From the glossary

Related terms.

Due dates and calendars Advance Tax Advance tax is the income tax paid in instalments during the financial year in which the income is earned, rather than as a lump sum at year-end, as mandated by the Income Tax Act. Also called advance income tax, pay-as-you-earn tax TDS TDS (Tax Deducted at Source) A system where the payer deducts income tax at prescribed rates before paying the payee, and deposits it with the government on the payee's behalf. Also called withholding tax, tax deduction at source, tax withheld at source Due dates and calendars Financial Year (FY) The 12-month accounting period from April 1 to March 31 used for tax filings, financial reporting, and statutory compliance in India. Also called accounting year, tax year Due dates and calendars Assessment Year (AY) The year immediately following the Financial Year in which income earned during the FY is evaluated and taxed. Also called tax assessment year Vendor onboarding PAN (Permanent Account Number) A unique 10-character alphanumeric identifier issued by the Income Tax Department of India to every taxpayer. Also called PAN card, PAN number TDS returns and challans Form 26AS Form 26AS is an annual consolidated tax statement issued by the Income Tax Department showing all taxes deducted, collected, or paid against a taxpayer's PAN. Also called tax credit statement, annual tax statement

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