ITR Advance Tax Deadline Today: Who Needs To Pay, How To Avoid Penalties

Taxpayers with an income tax liability exceeding Rs 10,000 must pay advance tax by December 15 to avoid penal interest and penalties. This "pay-as-you-earn" tax applies to individuals, businesses, and salaried professionals whose post-TDS liability crosses the threshold. Missing the deadline can result in financial repercussions.

What Is Advance Tax

Advance tax is a system where taxpayers pay their income tax liability in installments throughout the financial year, instead of a lump sum at the end. It ensures that taxes are paid as income is earned, maintaining a steady revenue flow for the government.

Advance tax obligations extend beyond businesspersons and corporations. Salaried individuals must also pay advance tax if their liability after accounting for Tax Deducted at Source (TDS) exceeds Rs 10,000. However, resident senior citizens with no income from business or profession are exempt from this requirement.

Advance tax is typically paid in four instalments:

• 15 per cent by June 15
• 45 per cent by September 15
• 75 per cent by December 15
• 100 per cent by March 15

How To Pay Advance Tax

1. Go to the official Income Tax Department website.

2. Log in using your PAN and password.
3. Select Payment Option: Navigate to the e-pay tax section on the portal.
4. Select the correct assessment year. For the financial year 2024-25, the assessment year is 2025-26.
5. Ensure that "Advance Tax (100)" is selected as the payment type.
6. Follow the instructions to complete the payment using net banking, debit card, or other available options.
7. After payment, download and save the payment receipt for your records.

What If You Miss Advance Tax Deadline

Failing to pay advance tax by the stipulated deadlines can result in penalties under the Income Tax Act:

• A 1 per cent monthly interest is charged on any shortfall or non-payment of advance tax, calculated until the amount is cleared.
• If 75 per cent of the tax liability is not paid by December 15, interest under Section 234C applies.
• Failure to pay 100 per cent of the tax by March 15 leads to further penalties.
• If the tax remains unpaid and is cleared only while filing income tax returns, an extra 4 per cent annual interest under Section 234B is imposed.

Paying advance tax on time ensures steady revenue for the government, prevents taxpayers from facing a year-end burden, and avoids hefty penalties, keeping them compliant with tax laws.

ITR Advance Tax Deadline

Since December 15, 2024, falls on a Sunday, taxpayers can make their advance tax payment on Monday, December 16, 2024. According to an Income Tax circular, when a due date coincides with a public holiday, the next business day becomes the final deadline.

“Taxpayers should note that while the due date for the third installment of advance tax for FY 2024-25 is December 15, 2024, which falls on a Sunday, payments can be made by December 16, 2024. However, they must ensure that the due date will be December 15 for all subsequent periods, provided it does not fall on a weekend or public holiday,” clarified Amit Bansal, Partner at Singhania & Co. as per Business Today.