Advance Tax Deadline: Pay by March 15 to Avoid Penalty!
🚨 Attention taxpayers! The deadline to pay the 4th and final installment of advance tax for FY 2023-24 is March 15, 2025. Missing this deadline could result in penalties under Sections 234B and 234C of the Income Tax Act.
Let’s break down who needs to pay, how to calculate, and what happens if you miss the deadline. 👇
📌 What is Advance Tax?
Advance tax is the tax that individuals and businesses must pay in advance, instead of paying a lump sum at the end of the financial year. It is paid in four installments based on estimated income.
📅 Advance Tax Payment Schedule
| Installment | Due Date | % of Total Tax Payable |
|---|---|---|
| 1st Installment | June 15 | 15% |
| 2nd Installment | September 15 | 45% (including 1st installment) |
| 3rd Installment | December 15 | 75% (including 1st & 2nd installments) |
| 4th Installment | March 15 | 100% (Full Payment) |
📢 Final payment deadline: March 15, 2025
🔍 Who Needs to Pay Advance Tax?
You must pay advance tax if:
✅ Your total tax liability exceeds ₹10,000 after TDS deductions.
✅ You earn from sources other than salary, such as:
- Rent income 🏡
- Capital gains 📈
- Fixed deposit (FD) interest 🏦
- Lottery winnings 🎰
- Freelancing/business income 💼
📌 Salaried individuals with only TDS deducted are exempt, but if they have additional income, they must pay advance tax.
🚨 What Happens If You Miss the Deadline?
❌ Penalty under Section 234B & 234C
📌 Interest Charges:
- 1% per month on unpaid tax or delayed payment.
- If 90% of tax is not paid by March 15, interest applies.
💡 Avoid penalties by paying advance tax on time!
✅ How to Pay Advance Tax?
🖥️ Online Payment:
1️⃣ Visit https://www.incometax.gov.in
2️⃣ Click on ‘e-Pay Tax’
3️⃣ Select Advance Tax (Challan 280)
4️⃣ Enter PAN, assessment year (AY 2024-25), and amount
5️⃣ Make payment via Net Banking, Debit Card, or UPI
🏦 Offline Payment:
- Visit your nearest bank branch authorized for tax collection.
📢 Final Reminder: Pay Before March 15!
✔️ Calculate your tax liability
✔️ Pay in advance to avoid penalties
✔️ Keep a record of your payment receipt
💬 Need help with advance tax calculation or payment steps? Ask me! 🚀
