Advance Tax Deadline: Taxpayers have the last day to deposit the first installment of advance tax for the financial year 2024-25. There are only a few hours left for taxpayers to deposit advance tax. The last date for filing advance tax is 15 June 2024
Advance Tax Deadline: Taxpayers have the last day to deposit the first installment of advance tax for the financial year 2024-25. There are only a few hours left for taxpayers to deposit advance tax. The last date for paying advance tax is June 15, 2024. If you do not pay advance tax within this deadline, a penalty will be imposed under sections 234 B and 243 C.
Who has to pay advance tax
Any taxpayer other than a salary class person whose tax liability for the financial year is Rs 10,000 or more in any accounting year after deducting TDS. Apart from this, individuals whose income is more than their salary, such as rent, capital gains, FD or lottery winnings, are required to pay advance tax.
What happens if you don’t pay advance tax?
The Income Tax Department charges interest on the shortfall in advance tax. Interest is charged under Section 234B and Section 234C of the Income Tax Act. Therefore, if one does not pay advance tax or delays the advance tax payment, he ends up paying more tax in the form of interest, and hence it is very important to calculate your advance tax correctly and pay it on time.
Section 234B: Interest is charged for shortfall in advance tax if the person pays less than 90% of the income tax liability before the end of the financial year i.e. 31st March. The interest rate charged is 1% per month.
Section 234C: The interest charged under this Act is based on four installments, i.e. 15th June, 15th September, 15th December and 15th March. The interest rate charged by the Income Tax Department is 1% per month.
Advance tax has to be paid 4 times a year
Advance tax is paid within the same financial year in which the income is earned. It has to be paid four times in a financial year. Taxpayers have to pay 15 per cent of the total tax liability by June 15. While 45 per cent has to be paid by September 14. This includes the installment paid in June. The liability till December 15 is 75% which includes the installments of June and September. According to the Income Tax Act, the entire tax has to be paid 100 per cent by March 15. The last date for depositing the first installment of advance tax for the financial year 2024-25 is today, June 15, 2024.
