Advance Tax Deadline: Taxpayers have to deposit the last and fourth installment of advance tax for the financial year 2023-2024 by March 15. Taxpayers have about 10 days left to deposit the advance tax. The last date for paying advance tax is March 15, 2025. If you do not pay the advance tax within this stipulated time limit
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Advance Tax Deadline: Taxpayers have to deposit the last and fourth installment of advance tax for the financial year 2023-2024 by March 15. Taxpayers have about 10 days left to deposit the advance tax. The last date for paying advance tax is March 15, 2025. If you do not pay the advance tax within this stipulated time limit, a penalty will be imposed under sections 234 B and 243 C.
Advance tax has to be paid 4 times a year
Advance tax is paid within the same financial year in which the income is earned. It has to be paid four times in a financial year. If it has to be paid in four installments. Taxpayers have to pay 15 per cent of the total tax liability by June 15. While 45 per cent has to be paid by September 14. This also includes the installment paid in June. The liability till December 15 is 75% which includes the installments of June and September. According to the Income Tax Act, 100% of the entire tax has to be paid by March 15.
Who has to pay advance tax?
Any taxpayer other than a salaried class individual whose tax liability for the financial year is Rs 10,000 or more in any accounting year after deduction of TDS. Additionally, individuals whose income is more than their salary, such as rent, capital gains, FD or lottery winnings, are required to pay advance tax.
What happens if you don’t pay advance tax?
The Income Tax Department charges interest on the advance tax installment. Interest is charged under Section 234B and Section 234C of the Income Tax Act. Therefore, if someone does not pay advance tax or there is a delay in advance tax payment, he has to pay more tax in the form of interest. It is important to calculate your advance tax correctly and pay it on time.
