New Delhi, Dec 15 (KNN) The Central Board of Direct Taxes (CBDT) has asked the taxpayers to pay the third installment of advance tax on or before December 15th, 2018.

The taxpayers who are bound to pay advance tax will pay 75 per cent of the due amount on or before 15th December 2018.

Otherwise, payment on or before 15th March 2019, 100 percent of the amount shall be remitted to the Government, said notification.

“It should be noted that short/non-payment or deferment of payment of advance tax will result in levy of interest,” the Board said.

Any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted/ collected at source is Rs 10,000/- or more, are liable to pay advance tax.

While, resident senior citizen (individual who is of the age of 60 years or more) not having income from the business/ profession is not liable to pay.

The Board mandates on-line payment of advance tax for all Corporates and also those assessees whose accounts are required to be audited under section 44AB of the income tax Act, 1961.

Though e-payment is not mandatory for other taxpayers, it would be convenient for them since it ensures correct credit.

Advance tax means payment of income tax in advance instead of lump sum payment at year end. It is also known as pay as you earn tax. These payments have to be made in installments as per due dates provided by the CBDT.