New Income Tax Bill 2025: New rule on advance tax, 3% interest will be charged if there is delay; Know the important news..

Advance tax 2025 new rules: The Finance Ministry on Tuesday issued a new notification regarding advance tax in the Income Tax Bill, 2025. According to this, if you do not pay the full amount of advance tax (Advance Tax 2025) by the due date, then you will have to pay 3% interest. This rule has been made in conjunction with the old Income Tax Act, 1961, so that there is no confusion. Let's understand why it matters to you.

What does the new rule say?

According to the current rules, if your tax is Rs 10,000 or more, then you have to deposit advance tax four times a year. These four dates are: 15 June, 15 September, 15 December, and 15 March. If you are unable to pay the full tax by these dates, then interest has to be paid.

Earlier, the new Income Tax (No. 2) Bill, 2025 stated that if you deposit the remaining amount on the very next day of the due date, then only 1% interest per month will be charged. But this rule did not match the old law, due to which taxpayers were having difficulty understanding it.

Now the new notification has made it clear. Even if you deposit the tax one day late, you will have to pay at least 3% interest for 3 months. That is, even a small mistake can prove to be costly for you.

What did the experts say?

Sandeep Jhunjhunwala, partner, Nangia Andersen LLP, explained this change and said, "The earlier rule did not match with the old tax law. Now this new notification has made everything clear.

If a taxpayer deposits the remaining tax after the due date, even after one day, then he will have to pay at least three months' interest." This means that now taxpayers have to be more cautious than before, so that the burden of interest can be avoided.

What is the purpose of the new bill?

The 'Income Tax (No. 2) Bill, 2025', passed in the Lok Sabha on Monday, will soon become a law. It will replace the 60-year-old 'Income Tax Act, 1961'. The biggest goal of the new law is to simplify the tax rules.

In this, by reducing complex rules and words, the tax system is being made such that even the common man can understand it easily. In particular, an attempt has been made to provide relief to taxpayers by making the rules related to advance tax and interest clearer.

For whom is the new rule important?

The new rule is important for all taxpayers who pay advance tax. Whether you do business, are employed, or are a professional, if your tax is high, then this rule may apply to you.

This step of the Finance Ministry is in the direction of making the tax system more transparent, but at the same time it motivates you more strictly to pay tax on time. If you do not pay tax on time, then 3% interest can be heavy on your pocket.

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