Complete this government-related task before June 15 to avoid heavy losses and penalties.

Advance Tax Deadline: June 15 is a crucial date for taxpayers; it is the deadline for depositing the first instalment of advance tax.

Advance Tax Deadline: The month of June holds special significance for taxpayers, as it marks the deadline for advance tax payments. Specifically, June 15 is the last date to deposit the first instalment. Taxpayers with an annual tax liability exceeding ₹10,000 must make this payment on time; failure to do so results in higher interest charges.

What is Advance Tax?

Advance tax is the prepayment of income tax, paid in instalments throughout the year rather than in a lump sum at the end of the year. It is often referred to as the "pay-as-you-earn" scheme. Payment is mandatory if your tax liability exceeds ₹10,000.

Who pays Advance Tax?

Advance tax is paid by both business owners and salaried individuals. For instance, tax often needs to be paid on income from sources such as bank fixed deposits (FDs), rental income, capital gains, dividends, or freelance work.

Advance Tax Payment Schedule:

Just as June 15 is the deadline for the first instalment (requiring payment of 15% of the tax), the subsequent deadlines are September 15 (45%), December 15 (75%), and March 15 (100%).

What happens if Advance Tax is not paid on time?

Failure to pay advance tax on time, or paying an insufficient amount, attracts higher interest charges under Sections 234B and 234C of the Income Tax Act.

How to pay Advance Tax from home?

To pay advance tax online yourself, visit the e-filing portal and click on the 'e-Pay Tax' section. Now, select the assessment year, tax type (Advance Tax), and Challan 280. Then, enter your PAN number and the remaining details. After this, you will need to make the payment using a debit card or net banking. Once the transaction is complete, you will receive a challan receipt; make sure to keep this receipt safe.