Advance Tax Deadline Near — Pay by December 15 or Face Penalty
The third installment of advance tax must be paid by 15 December 2025. Failure to pay on time will attract a monthly 1% interest and penalty under sections 234B and 234C.
India has issued an important alert for taxpayers. The last date to deposit the third installment of advance tax is December 15, 2025. Individuals whose annual tax liability exceeds ₹10,000 are required to pay advance tax. If payment is not made by the deadline, taxpayers will have to pay interest and penalties under Income Tax Act Sections 234B and 234C.
What is Advance Tax?
Advance tax is the tax paid by taxpayers in installments throughout the financial year. It helps the government receive revenue on time and protects taxpayers from bearing a large lump-sum burden at the end of the year.
Who is required to pay Advance Tax?
Generally, salaried individuals are not required to pay advance tax separately since TDS is already deducted from their income.
However, if they have additional income from interest, rent, capital gains, business income, etc., they must pay advance tax.
Freelancers, professionals, and business owners also fall under this rule. Anyone whose total tax liability exceeds ₹10,000 must pay advance tax.
Advance Tax Payment Schedule
| Due Date | % of Total Tax to be Paid |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
What happens if you miss the deadline?
If advance tax is not paid on time, interest will be charged under Sections 234B and 234C at 1% per month.
Example:
If someone has a tax liability of ₹1,00,000 and does not deposit ₹75,000 by December 15, they must pay interest on the pending amount.
How to Pay Advance Tax
The process is simple. Taxpayers can:
-
Visit the income tax department website
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Pay using net banking or debit card
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Select Challan 280
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Keep the receipt safely after payment
Final Reminder
The December 15 deadline is crucial. Taxpayers with liability above ₹10,000 must pay the third installment of advance tax on time to avoid penalties and complications while filing their return later.
Tax experts advise making the payment before the deadline to avoid interest and legal issues.
