What is Advance Tax?

Advance tax is a system of pre-paying your estimated annual income tax liability in installments throughout the financial year. Instead of waiting until the end of the year and potentially facing a large lump sum payment, advance tax allows you to spread out your tax payments and avoid the last-minute scramble.

Who Needs to Pay Advance Tax?

• Individuals and businesses whose estimated tax liability for the year exceeds Rs. 10,000 are required to pay advance tax.
• This includes individuals with income from sources other than salaried income, such as rental income, business income, capital gains, or professional fees.

Benefits of Paying Advance Tax:

• Reduces financial burden: Paying in installments helps avoid the stress of a large tax payment at the end of the year.
• Improves cash flow management: Predictable tax payments allow for better budgeting and financial planning.
• Avoids interest and penalties: Late payment of advance tax attracts interest and penalties, which can be significant.
• Promotes financial discipline: Regular tax payments encourage responsible financial management and awareness.

How to Calculate and Pay Advance Tax:

• Estimate your total taxable income for the year. This includes income from all sources.
• Calculate your tax liability by applying the applicable tax rates to your income.
• Pay the calculated tax in installments:
  • 1st installment – 15% of the tax liability by June 15th
  • 2nd installment – 45% of the tax liability by September 15th
  • 3rd installment – 75% of the tax liability by December 31st
  • 4th installment – Remaining tax liability by March 31st (following the financial year)

Built upon the legacy of Tally.ERP 9, Tally Prime offers a streamlined user interface with improved ease of use. Whether you’re a seasoned accounting professional or a business owner just starting out, Tally Prime’s intuitive design makes it accessible and user-friendly.

Key Features of Tally Prime:

• Enhanced Simplicity: Navigate seamlessly with a modern interface and intuitive workflows. Find the information you need quickly and efficiently, saving valuable time and reducing errors.
• Unmatched Flexibility: Tally Prime adapts to your unique business needs. Customize reports, vouchers, and workflows to perfectly align with your specific processes and preferences.
• Powerful Inventory Management: Gain complete control over your inventory with features like multi-location tracking, batch and expiry dates, and job costing. Make informed decisions about stocking levels and minimize stockouts.
• Comprehensive Business Reporting: Generate insightful reports with visualizations and drill-down capabilities. Gain valuable insights into your business performance, identify trends, and make data-driven decisions for future growth.
• Increased Compliance: Stay compliant with the latest tax regulations, including GST. Tally Prime automates calculations and ensures accurate reporting, saving you time and effort.
• Improved Security: Rest assured knowing your data is safe with robust security features including data encryption and access controls.

Beyond the features, here’s what sets Tally Prime apart:

• Scalability: Tally Prime caters to businesses of all sizes, from small startups to large enterprises. It can grow with your business, adapting to your evolving needs.
• Offline Functionality: Work uninterrupted, even with limited internet connectivity. Tally Prime allows you to continue operating offline and seamlessly sync data when you’re back online.
• Multilingual Support: Operate in your preferred language with multilingual support available in various regional languages.

What is GST?

Think of GST as a single tax levied on the supply of goods and services. It essentially replaced a multitude of indirect taxes previously levied at the central and state levels, aiming to create a seamless and transparent taxation system.

Benefits of GST:

• Simplified Tax Structure: Eliminates cascading taxes, reducing the overall tax burden on businesses and consumers.
• Improved Compliance: Encourages transparency and discourages tax evasion due to a centralized system.
• Enhanced Efficiency: Streamlines the movement of goods across states, fostering economic activity.

Key Concepts of GST:

• GST Rate: The tax rate levied on the supply of goods and services. Different rates (0%, 5%, 12%, 18%, and 28%) apply to various categories.
• Input Tax Credit (ITC): Allows businesses to claim credit for the GST paid on their purchases, reducing the final tax liability.
• HSN Code: A harmonized system code used to classify goods for tax purposes.
• GSTIN: A unique identification number assigned to every registered taxpayer.

Who needs to register for GST?

Businesses with a turnover exceeding ₹20 lakh (₹40 lakh in certain special cases) are generally mandated to register for GST.

Compliances under GST:

• Filing GST returns: Regular filing of returns to report transactions and tax liabilities.
• Issuing invoices: Providing proper invoices with all mandatory details for every supply made.
• Making tax payments: Timely payment of GST based on the tax liability calculated.