Advance Tax: How to calculate it?

NEW DELHI: Did you know that you can pay your tax advance? Yes, if your tax liability for a financial year exceeds Rs 10,000 then you can pay your tax advance over 4 installments in an equal time gap.
The tax department initiated an advance tax facility to reduce the burden of the taxpayers. Advance tax facility helps the taxpayers from the lump sum payment at the year-end.Advance tax should be paid on the scheduled dates provided by the Income Tax department.
Advance tax facility is available for the following people.
* Salaried taxpayers
* Freelancers
* Business
* Professionals (Doctors, Lawyers, Architects)
The senior citizens, above the age of 60 years, who don’t run a business are exempted from the advance tax.
How to calculate your advance tax
Following are the steps to calculate your advance tax.
Determine your income
The first step is to determine your income. You would need to determine the earnings you get besides your salary. It is to be noted that, any ongoing agreements that might pay out later should be included while you calculate the income.
Minus the expenses
The next step is deducting your expenses which are related to the workplace, travel expense, internet, and phone costs from your income.
Total your income
You need to add other income that you receive from renting out a place, interest income etc. The next step you need to do is deducting TDS deducted from your salaried income.
Total Advance Tax
If you come to the conclusion that, your tax due exceeds Rs 10, 000 then you are entitled to pay advance tax.