Advance Tax Instalment Payment: If you pay income tax and do not want to face any kind of penalty or notice, then this news is very important for you. The last date for paying advance tax is 15 March 2025. If you do not pay your advance tax within this stipulated time, then you will have to pay interest and penalty under sections 234B and 234C.

Many people are confused about advance tax, who has to pay it, what is its process, and what will happen if it is not paid on time. In this news, we will give you complete information related to advance tax in simple language so that you can understand it without any hassle and pay it on time.

What is Advance Tax?

Advance tax means that if your annual tax liability is more than Rs 10,000, then you have to deposit the tax in four parts in advance throughout the year. This is a way of tax collection for the government so that taxpayers are not burdened too much at one time and the government also keeps getting revenue regularly.

In simple words, if the tax on your annual income is more than Rs 10,000, then you will have to deposit this tax gradually throughout the year. This is called advance tax.

Who has to pay advance tax?

Paying advance tax is necessary for all those whose tax liability is more than Rs 10,000. This includes the following people:

People doing business or freelancing, on whose income TDS is not deducted.
Salaried people, who also have income from other sources, such as rental income, interest on FD, profit from the stock market, or gain from mutual funds.
NRIs, who have any kind of income in India.
People who are going to sell any property between March 15 and March 31, are also required to pay advance tax.

If you have only salary income and TDS has been deducted from it completely, then you do not need to pay advance tax separately. But if you have any other income apart from your salary, then you will have to pay advance tax for it.

How and when to pay advance tax?

The advance tax has to be paid four times a year. It is mandatory to deposit it in four installments.

First installment – ​​By 15 June: By this time you have to deposit 15% of your total tax.

Second installment – ​​By 15 September: By this time you have to deposit 45% of the total tax (including the first installment).

Third installment – ​​By 15 December: By this time you have to pay 75% of the total tax (including the first and second installments).

Fourth and final installment – ​​By 15 March: By this day you have to deposit at least 90% of your estimated tax.

If you do not pay 90% advance tax even by March 31, then you will have to pay a penalty of 1% every month from April till you file ITR.

What will happen if advance tax is not paid on time?

If you do not pay advance tax on time, then you will have to pay penalty and interest under section 234B and section 234C of the Income Tax Act.

If 90% tax is not deposited by March 15, then the government will charge you 1% interest every month.

If the tax is not deposited even by March 31, then this interest will keep increasing every month till you file ITR.

The Income Tax Department can also send a notice, which can cause you trouble.

So, if you do not pay tax on time, then you will have to pay both interest and penalty.

How to pay advance tax? (How to Pay Advance Tax Online)

If you have to pay advance tax, then you can deposit it online. For this, you have to visit the website of the Income Tax Department.

First of all, go to the website https://www.incometax.gov.in.
Click on the E-Pay Tax option there.
Enter your PAN number and Aadhaar-PAN linked mobile number.
Now select Assessment Year 2025-26.
Select Advance Tax in Type of Payment and click on Continue.
Enter your tax amount and pay.
You can pay through net banking, debit card, credit card, or UPI.
After the payment, your challan will be generated, which you will have to keep safe at the time of ITR filing.
It is very important to pay advance tax on time so that you can avoid any kind of penalty or interest. The government has made the entire process of depositing advance tax online, which has now become very easy to pay. So without delay, pay advance tax now and avoid financial tension.

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