The last date for paying advance tax is March 15, 2025. If you do not pay the advance tax within this stipulated time limit, a penalty will be imposed under sections 234 B and 243 C.

Advance tax has to be paid 4 times a year

Advance tax is paid in the same financial year in which the income is earned. It has to be paid four times in a financial year. If it has to be paid in four installments. Taxpayers have to pay 15% of the total tax liability by June 15. While 45% has to be paid by September 14. This includes the installment paid in June. By December 15, the liability is 75% which includes the installments of June and September. According to the Income Tax Act, 100% of the entire tax has to be paid by March 15.

Who has to pay advance tax?

Any taxpayer other than a salaried class individual whose tax liability for the financial year is Rs 10,000 or more in any accounting year after deduction of TDS. Additionally, individuals who have income above their salary, such as rent, capital gains, FDs or lottery winnings, are required to pay advance tax.

What will happen if you do not pay advance tax?

The Income Tax Department charges interest on the advance tax installment. Interest is charged under Section 234B and Section 234C of the Income Tax Act. Therefore, if someone does not pay advance tax or delays the advance tax payment, he has to pay more tax in the form of interest. It is important to calculate your advance tax correctly and pay it on time.

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In such a situation, taxpayers may wonder if they can make this payment on 16 December 2024 i.e. Monday? If the income tax liability of the taxpayers is more than Rs 10,000, then it is mandatory to pay advance tax. If the payment is not made on time, taxpayers may have to face penalty and interest.

Income tax department rules

According to the Income Tax Department’s circular dated 14 January 1994, if the last date for advance tax payment falls on a public holiday or Sunday and the bank is closed on that day, then the taxpayer gets the next working day for payment. In this case, no penalty or interest will be levied on the taxpayer under Section 234B and 234C of the Income Tax Act 1961.

Can you pay advance tax on 16 December without penalty?

The third installment payment for the financial year 2024-25 can be made on Monday, 16 December 2024, as 15 December is a Sunday. In this case, no penalty or interest will be levied on taxpayers. Taxpayers can pay their third installment of advance tax on December 16 without any worry.

Advance tax: Payment is made in four installments

Advance tax has to be paid in four installments in the same financial year in which the income is earned.

15% – till 15 June

45% – By September 15 (includes 1st instalment)

75% – By 15th December (includes 1st and 2nd instalment)

100% – by 15 March

Who has to pay advance tax?

If you still have a tax liability of Rs 10,000 or more after deducting TDS on your income, then you will have to pay advance tax. Apart from salary, this also includes income from rent, capital gains, FD interest, or lottery winnings.

What will happen if advance tax is not paid?

If you do not pay advance tax or pay it late, you will have to pay a penalty as per section 234B and 234C under the Income Tax Department. The rate of this penalty is 1% per month.

Section 234B: If you have not paid 90% of the total tax by March 31, then you will have to pay interest at the rate of 1% per month.

Section 234C: Interest will be charged at the rate of 1% per month for four installments at different times. Hence, it is very important to pay the advance tax on time to avoid additional penalty.

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The post Advance Tax Deadline: Can you pay advance tax on 16 December without penalty? know here first appeared on Rightsofemployees.com.

If you do not pay the advance tax by this date, you will have to pay a penalty under sections 234B and 234C.

Advance tax has to be paid 4 times a year

Advance tax is paid in the same financial year in which the income is earned. It has to be paid four times in a financial year. That is, it has to be paid in four installments. Taxpayers have to pay 15% of the total tax liability by June 15. While 45% has to be paid by September 15. This also includes the tax paid till June 15. The liability till December 15 is 75% which includes the installments of June and September. According to the Income Tax Act, 100% of the entire tax has to be paid by March 15.

Advance tax: Payment in four installments

Advance tax is to be paid in four instalments in the same financial year in which the income is earned :

15% – till 15 June

45% – By September 15 (includes 1st instalment)

75% – By 15th December (includes 1st and 2nd instalment)

100% – by 15 March

Who has to pay advance tax?

If you still have a tax liability of Rs 10,000 or more after deducting TDS on your income, then you will have to pay advance tax. Apart from salary, this also includes income from rent, capital gains, FD interest, or lottery winnings.

What will happen if advance tax is not paid?

If you do not pay advance tax or pay it late, you will have to pay a penalty as per section 234B and 234C under the Income Tax Department. The rate of this penalty is 1% per month.

Section 234B: If you have not paid 90% of the total tax by March 31, then you will have to pay interest at the rate of 1% per month.

Section 234C: Interest will be charged at the rate of 1% per month for four installments at different times. Hence, it is very important to pay the advance tax properly and on time to avoid additional penalty.

The post Advance Tax Deadline: Only 5 days are left to deposit advance tax, make payment immediately first appeared on Rightsofemployees.com.

pay advance tax

Advance tax is a tax which is paid during the financial year instead of at the end of the year. Tax laws tell when it has to be given throughout the year. Advance tax is paid in installments in a fiscal year. Advance tax is also called pay as you earn.

Penalty is imposed for not paying advance tax

In case of not depositing advance tax on time, penalty can be imposed on tax under sections 23B and 234C of the Income Tax Act. If the taxpayer does not deposit the entire amount of advance tax or the advance tax paid is less than 90 per cent of the total advance tax liability, interest is charged under section 234B. If the installment of advance tax paid is less than the prescribed percentage, then interest under Section 234C is charged at 1% or part of the month every month from April till the date of tax payment.

How to pay advance tax

1. Log in to the official website of Income Tax Department www.incometax.gov.in and click on e-payment service.

2. Select ITNS 280 form. This is an option for individual tax payment.

3. Select the code for advance tax and fill the name, address, PAN, mobile number and other information in the form.

4. Click on Proceed.

5. Make payment on the payment gateway page.

6. After payment, Challan 280 receipt will be generated.

7. Save a copy for future.

The post Advance Tax Deadline: Today is the last date to deposit advance tax, if you miss it, you will have to pay penalty. first appeared on Rightsofemployees.com.