Advance tax is one of the major tools used by the Govt. to collect tax from the assessees in all over India. This prepaid form of tax is designed in such a way that an assessee is made to pay tax to the Govt. in a ‘Pay as You Earn Scheme’.

This tool mainly aims at reducing the last moment hassles to an assessee for payment of tax liability which may be because of either shortage of time or funds. Consequently the Income Tax Act also has three provisions which specify chargeability of Interest in case of non payment of Advance Tax, which have been separately covered in the last part of the adjacent index.