Advance Tax Deadline: Pay by March 15 to Avoid Penalties!

If your tax liability is ₹10,000 or more, you must pay your last installment of advance tax by March 15, 2025. This is a crucial requirement under the Income Tax Act, ensuring the government collects tax within the same financial year that the income is earned. Missing the deadline could result in penalties and interest charges, so it’s important to act on time.

Who Needs to Pay Advance Tax?

✔️ Salaried individuals earning income from rent, capital gains, or interest (other than salary)
✔️ Business owners and self-employed professionals
✔️ Freelancers and consultants

🚫 Who is Exempt from Advance Tax?
❌ Senior citizens (60+) with no income from business or profession
❌ Salaried employees whose total tax liability is already covered through TDS (Tax Deducted at Source)

Advance Tax Payment Schedule

Advance tax payments are made in four installments throughout the financial year:

• June 15 – 15% of total tax liability
• September 15 – 45% of total tax liability (including the first installment)
• December 15 – 75% of total tax liability (including the first and second installments)
• March 15 – 100% of total tax liability

💡 Final Reminder: The last and full installment must be paid by March 15 to avoid penalties.

How to Pay Advance Tax?

✅ Online Payment: Corporate taxpayers and individuals whose accounts require an audit under Section 44AB must pay electronically via the income tax e-filing portal or their bank’s online tax payment system.

✅ Offline Payment: Other taxpayers can also pay through banks, but online payment is recommended for ease and accuracy.

Penalty for Missing the Advance Tax Deadline

⚠️ Section 234C – If tax is not paid on time, a 1% monthly interest is charged on the outstanding amount.

⚠️ Section 234B – If 90% of the total tax liability is not paid by March 15, 1% monthly interest will be charged until the full amount is paid.

What Should You Do Now?

💰 If you haven’t paid your advance tax yet, make sure to do so before March 15 to avoid unnecessary penalties and interest. Log in to the income tax e-filing portal, calculate your dues, and complete the payment to stay compliant!

A timely tax payment will not only save you from penalties but also ensure smooth financial planning. Act now! 🚀