Advance Tax Payment Deadline: Non-payment of advance tax on time attracts interest under sections 234B and 234C of the Income Tax Act. Resident senior citizens who do not have income from business or profession are exempted from paying advance tax. Salaried persons who do not have any additional income also do not need to pay it.
Tax Payment Deadline: March 15, 2025 is the last date for taxpayers to pay the fourth and final installment of advance tax for the financial year 2024-25. Advance tax is paid in the same financial year in which the income is earned and it applies to individuals and businesses with large tax liabilities. Now first of all, let’s know who needs to pay advance tax…
Any taxpayer whose total tax liability after deducting TDS (Tax Deducted at Source) is Rs 10,000 or more, has to pay advance tax. This includes salaried employees who have additional sources of income like rent, capital gains or interest income and the income from this is more than their salary. Businesses and self-employed individuals are also required to pay advance tax.
Resident senior citizens (aged 60 years or above) who do not have income from business or profession are exempted. Apart from this, salaried persons who do not have any additional income are also not required to pay advance tax as their employers deduct TDS.
Advance Tax Instalment Schedule
15 June- 15% of total tax liability
15 September- 45% of total tax liability (including June instalment)
15 December- 75% of total tax liability (including previous instalments)
15 March- 100% of total tax liability
Mode of payment
E-payment of advance tax is mandatory for corporates and taxpayers whose accounts need to be audited under section 44AB of the Income Tax Act. Other taxpayers can also use online payment for convenience.
Penalty for non-payment or delay
Non-payment of advance tax on time attracts interest under sections 234B and 234C of the Income Tax Act. 1% interest per month is charged on the unpaid amount for any shortfall in instalments. If less than 90% of the total tax is paid by March 15, additional interest under section 234B is applicable until the tax is fully settled.
