Today is the Final Deadline for Advance Tax Payment – Avoid Penalties!
Missing today’s deadline for advance tax payment for the financial year 2024-25 could lead to penalties. Under Sections 234B and 234C of the Income Tax Act, late or non-payment of advance tax attracts interest charges. However, certain individuals, including resident senior citizens without business income and salaried employees without additional income, are exempt.
Advance tax must be paid within the same financial year in which income is earned. If a taxpayer’s total tax liability (after TDS deduction) exceeds ₹10,000, they are required to make advance tax payments. This applies to:
Salaried employees with additional income sources like rent, capital gains, or interest income exceeding their salary.
Self-employed individuals and businesses with substantial tax liabilities.
Resident senior citizens (aged 60 or above) with no income from business or profession.
Salaried employees whose employers deduct TDS and who have no additional income sources.
To avoid penalties, taxpayers should follow this installment schedule:
June 15 – 15% of total tax liability
September 15 – 45% of total tax liability (including June installment)
December 15 – 75% of total tax liability (including previous installments)
March 15 – 100% of total tax liability
For corporates and taxpayers whose accounts require auditing under Section 44AB, e-payment of advance tax is mandatory. Other taxpayers can also opt for online payments for convenience.
Failure to pay advance tax on time incurs 1% interest per month on the unpaid amount under Sections 234B and 234C. If a taxpayer pays less than 90% of the total tax liability by March 15, additional interest is charged under Section 234B until the full tax amount is cleared.
To avoid unnecessary penalties, ensure your advance tax payment is made before the March 15, 2025 deadline!
