New Delhi: The last date to file advance income tax for FY 2024-25 was March 15, 2025. However, people who missed paying the particular tax, can still pay the last quarter’s due advance tax by paying interest under Section 234C.
It is prudent to pay the interest and pay the advance tax before March 31, 2025 as this interest will be less than what an individual would pay after 31st March.
If a person does not pay the last quarter’s advance tax by the end of the current month, then he will be entitled to pay an additional interest under Section 234B from April 1, 2025. Taxpayers, having a total tax liability above Rs 10,000 in a financial year, are required to pay Advance Tax.
Individuals who missed paying advance tax before March 15, they will have to pay 1 per cent interest per month under Section 234C on the amount of deferred tax.
According to Central Board of Direct Taxes (CBDT), the taxpayer mandated to pay advance tax are required to assess their current income and if tax liability on the estimated income is more than the specified limit as per Income Tax rules, the assessee is entitled to pay the estimated tax in instalments during the financial year itself. “The assessee is required to pay tax as he earns and therefore the scheme of advance tax is also known as ‘Pay as you Earn Scheme’,” the Income Tax website mentions.
As per the Income Tax department, people whose estimated tax liability is Rs. 10,000 or more in a financial year, the individual is required to pay taxes in advance in the form of “advance tax”.
According to the rules, people of the age of 60 years or above who do not have any income from a business or profession, are not liable to pay advance tax.
