Income Tax: Are ITR and advance tax different and is there a need to file ITR even after paying advance tax? Read in details.
The business year 2025 has started and this is that important time of the year when you need to do a proper planning for the things related to finance for the entire coming year. This includes everything from taxation to investment. Meanwhile, while many taxpayers understand the importance of filing taxes, they are still confused about whether they need to file ITR after paying advance tax?
ITR and advance tax are different
ITR (Income Tax Return) and advance tax play different roles in India’s taxation system. ITR is a formal declaration submitted by individuals and organizations to the Income Tax Department, which contains details of their income earned during a financial year. Whereas advance tax is a system under which taxpayers pay their income tax in installments throughout the business year instead of making a lump sum payment at the end of the year.
For whom is it necessary to file ITR
Income Tax Return (ITR) is a form that you submit to the Income Tax Department. It contains details of your income and taxes applicable for a specified business year (from April 1 of the current year to March 31 of the next year). Filing ITR is important for many reasons –
Tax Liability: This helps the government determine your income tax payable based on your income source and deductions claimed.
Tax Refund Claim: If you have paid more tax than the dues, you can claim a refund from the Income Tax Department while filing ITR.
According to the IT Department, filing income tax return is necessary for every person whose income exceeds the maximum exemption limit.
So is there a need to file ITR even after advance tax?
After paying advance tax, it is mandatory for taxpayers to file income tax return. With this, self-assessment of income is completed and tax is calculated on the same. Penalty will be imposed for not filing income tax.
