Advance tax is a tax payment scheme that requires taxpayers to pay their taxes in advance instead of waiting until the end of the financial year. It is applicable to individuals, self-employed professionals, and businesses with income sources other than salaries. Advance tax is also known as "pay-as-you-earn" tax, as it requires taxpayers to estimate their income and pay taxes on it in advance. The amount of advance tax to be paid is calculated based on the taxpayer's estimated total income for the year, after deducting any allowable deductions.

Advance tax is an important source of revenue for the government, and failure to pay it can result in penalties and interest charges. It is usually paid in instalments, with the first instalment due by June 15th, the second instalment by September 15th, the third instalment by December 15th, and the final instalment by March 15th of the financial year. Advance tax helps taxpayers manage their tax liabilities and enables the government to collect revenue throughout the year, rather than waiting until the end of the financial year.

Advance tax is a mechanism by which taxpayers are required to pay a portion of their estimated annual income tax liability in advance, before the end of the financial year. Also known as "pay-as-you-earn" or "pay-as-you-go" tax, it is a system implemented by many countries to ensure a steady flow of revenue for the government throughout the fiscal year rather than relying solely on a lump sum payment at the end.

Individuals, businesses, and self-employed professionals with a significant tax liability are typically subject to advance tax requirements. The amount to be paid is calculated based on the taxpayer's projected annual income, and payments are made in installments throughout the financial year.

Advance tax helps governments manage their cash flow efficiently and reduces the risk of revenue shortfalls. It also aids taxpayers in managing their finances more effectively, as they are required to plan and budget for periodic tax payments. Failure to comply with advance tax regulations may result in penalties or interest charges.

Overall, advance tax serves as a proactive approach to tax collection, promoting fiscal discipline and ensuring a consistent revenue stream for government operations and public services.