Taxpayers must deposit the fourth and final installment of advance tax for the financial year 2023-24 by March 15.
They have about 10 days left to make the payment. The deadline for paying advance tax is March 15, 2025.
Failure to pay within this time frame will result in a penalty under sections 234B and 243C.
Advance Tax Payment Schedule
Advance tax is paid in the same financial year in which the income is earned and must be paid in four installments.
Taxpayers need to pay 15% of the total tax liability by June 15, while 45% must be paid by September 15, including the June installment.
By December 15, 75% of the total tax should be paid, covering the June and September installments.
As per the Income Tax Act, the full 100% tax liability must be cleared by March 15.
Who Needs to Pay Advance Tax?
Advance tax is applicable to taxpayers (except salaried individuals) whose total tax liability for the financial year is Rs 10,000 or more after TDS deduction.
Additionally, individuals earning income beyond their salary, such as rent, capital gains, fixed deposits (FDs), or lottery winnings, are also required to pay advance tax.
Consequences of Not Paying Advance Tax
If you fail to pay advance tax or delay the payment, the Income Tax Department will charge interest on the pending amount.
Interest is levied under Section 234B and Section 234C of the Income Tax Act.
As a result, taxpayers will have to pay extra tax in the form of interest. To avoid this, it is essential to accurately calculate and pay advance tax on time.
