Advance Tax Deadline: If you are a taxpayer and want to avoid notices and other problems, then you should pay all taxes on time. Currently, the last date for paying advance tax has come, which is March 15. If you do not pay advance tax within this stipulated time, then a penalty will be imposed under sections 234B and 243C.

Let's understand what is advance tax, who has to pay it, how it is paid, and what can be the consequences if it is not paid on time.

Who has to pay advance tax?

Apart from the salaried class, if the tax liability of any taxpayer is more than Rs 10,000 after the deduction of TDS in a financial year, then they will have to pay advance tax. Apart from this, people whose income is more than their salary, such as income from rent, capital gain, FD, or lottery, are also required to pay advance tax.

The advance tax has to be paid 4 times a year.
Advance tax is paid within the same financial year in which the income is earned. This has to be paid 4 times in a financial year. It has to be paid in 4 installments. Taxpayers have to pay 15 percent of the total tax liability by June 15, while 45 percent has to be paid by September 14. This includes the installment paid in June. The liability till December 15 is 75 percent, which includes the installments of June and September. According to the Income Tax Act, 100 percent of the entire tax has to be paid by March 15.

What will happen if you do not pay the advance tax on time?

Avoid penalties by paying advance tax on time. Interest has to be paid every month on the outstanding advance tax if it is paid late or not paid. Interest is charged under Section 234B and Section 234C of the Income Tax Act.

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