Advance Tax deadline is March 15, 2025. Failure to pay advance tax in or time may cause may cause to face a high penalty. Who need to pay, you don’t need to pay if you are salaried profession! Certain age doesn’t need to pay with certain criteria. Experts insights will explain everything. Let’s explore everything in detail.
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What Is Advance Tax?
According to Income Tax Regulation, When Taxpayer’s total tax liability on income from sources other than salary exceeds ₹10,000 in total, they must to pay advance tax for the financial year.
Business Today reported, “Advance tax is payable if the total tax liability for the financial year exceeds Rs 10,000. As such, taxpayers with incomes (such as rent, capital gains, dividends, etc.), must pay advance tax if their total liability exceeds Rs 10,000,” said CA Dr Suresh Surana.
Who Are Applicable to Pay the Advance Tax?
A salaried individual, Business owner, Freelancer and Self Employed need to pay the advance Tax. Only resident citizen 60 years old, don’t have any business income exempted from advance tax.
Business Today reported, “However, a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax,” Dr Surana added.
However, salaried individuals whose employer deducts the correct amount of TDS from salary don’t need to pay advance tax.
Advance Tax Deadline: Due Date to Pay and Installments.
Advance tax is paid in four installment, starting from the first quarter to fourth quarter of the Financial Year. The due date to pay the last quarterly installment of the of the financial year 2024 to 2025 is 15 March, 2025.
According to the Income-Tax Act 1961, the due dates Time table to pay the whole four installment’s Advance tax follows:
| Installments | Due Dates | Advance Tax |
| First Installment | June 15 | 15 percent of the estimated tax liability |
| Second Installment | September 15 | 45 percent of the tax liability, minus advance tax already paid |
| Third Installment | December 15 | 75 percent of the tax liability, minus advance tax already paid |
| Final Installment | March 15 | 100 percent of the tax liability, minus advance tax already paid |
Penalties After Missing To Pay On Due Dates.
Paying advance Tax is compulsory, who exceeds the estimated tax liability of over ₹10,000 during the financial year. But taxpayers failing to pay advance tax in or on due times will be a subject to bear penalties and interests.
As per Moneycontrol report, If you fail to adhere to the rules and due dates, you may have to pay a penalty. You will have to pay simple interest of 1 percent per month on the under-payment or non-payment of advance tax by the due date, till the amount is paid.
Do note, however, that the penal interest will come into play only if the advance tax paid is less than 12 percent and 36 percent of the advance tax due by June 15 and September 15, respectively. The penalty will also be levied if the advance tax paid is less than 75 percent and 100 percent of the due amount by December 15 and March 15, respectively, report adds.
If you miss the last instalment, March 15, you can still clear your dues by March 31, but you have to cough up interest for a month, per section 234C of the I-T Act, report further adds.
Income Sources On Which Advance Tax Must be Paid Without Penalty.
Business Today covers, Income from capital gains lead to pay tax in advance. Same way income from lotteries, crossword puzzles, races, games, etc. On the other hand if business or profession made incomes in the first year requires tax in advance.
“By virtue of this, there is no requirement to pay tax in advance on these specified income, however tax shall be paid once such income is earned i.e. tax needs to be deposited in the remaining advance tax instalments or in case where no instalments are due, by 31 March of the financial year and thereby penal interest under section 234C would not be triggered,” says Sheth.
Pay The Advance Tax In Simple Steps.
To pay your dues, you need to log on to www.incometax.gov.in If you haven’t done so already, you need to first register yourself using your PAN. Next, click on ‘e-pay tax’ under the ‘Quick Links’ menu on the left-hand side of the website. Follow the instructions to confirm your PAN, enter the OTP, and select the right assessment year (2025-26) when you are paying advance tax for the financial year 2024-25. Select ‘Advance Tax (100)’ as the ‘Type of payment’. Click on ‘Continue’, enter the details, and proceed to make the payment and complete the process.
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