Advance tax due December 15 is an important deadline for taxpayers who earn income from sources such as fixed deposits, rent, capital gains, dividends and freelancing.
Eligible taxpayers must ensure they have paid at least 75% of their estimated annual advance tax liability by this date.
Who Must Pay Advance Tax by December 15?
Under the applicable advance tax rules, individuals and businesses generally need to pay advance tax if their estimated tax liability for the financial year, after accounting for eligible tax deductions and credits, is ₹10,000 or more.
Resident senior citizens aged 60 or above who do not have income from business or profession are generally exempt.
Salaried employees whose tax is fully covered by TDS may not need to make a separate advance tax payment.
However, additional income from fixed deposits, rental properties, dividends, capital gains or freelance work can increase their tax liability and create an advance tax obligation.
Advance Tax Due December 15: How Much Must You Pay?
For most taxpayers, advance tax is paid in four instalments during the financial year.
The cumulative payment targets are 15% by June 15, 45% by September 15, 75% by December 15 and 100% by March 15.
The December instalment is therefore a key checkpoint.
Taxpayers should estimate their total income for the year, calculate the expected tax, and subtract eligible TDS and other applicable credits before determining the amount still payable.
What Happens If You Miss the December 15 Deadline?
Missing an advance tax instalment or paying less than the prescribed amount may lead to interest under Section 234C of the Income-tax Act, 1961, where applicable.
Interest is generally calculated at 1% per month or part of a month on the relevant shortfall for the prescribed period.
A further interest liability under Section 234B may also arise if the advance tax paid falls short of the required threshold by the end of the financial year.
The final amount depends on the taxpayer’s circumstances, payments made and applicable tax provisions.
How to Pay Advance Tax Online
Taxpayers can pay advance tax through the Income Tax Department’s e-filing portal using the e-Pay Tax facility.
They should select the appropriate payment category, enter the required details and complete the payment through an available payment method.
Keep the payment challan and confirmation for your records.
If you earn income from multiple sources or are unsure about the amount due, review your calculations carefully or consult a qualified tax professional before paying.
