Advance Tax Deadline
Advance Tax Deadline

For the financial year 2024-25 (Assessment Year 2025-26), the second installment of advance tax was due on or before September 15, 2024. If you missed this deadline, the Income Tax Department will impose interest on any delayed payments. All taxpayers with an estimated tax liability exceeding Rs 10,000 are required to pay advance tax according to specific schedules, rather than waiting until the end of the financial year.

Advance tax involves paying tax on your estimated income in installments throughout the financial year, instead of a single lump sum at year-end. These payments are split into four installments with specific due dates: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15.

Tax expert Shefali Mundra clarifies that while senior citizens are generally exempt from advance tax obligations, individuals and entities with business income must fulfill this requirement. Specifically, businesses and professionals operating under presumptive taxation schemes are required to settle their entire advance tax liability by March 15 each year.

Consequences of Missing the Advance Tax Deadline

If you miss the advance tax deadline, you may be liable to pay interest on the outstanding amount based on the specific circumstances of your case. Interest can be charged under sections 234A, 234B, and 234C.

How to Pay Advance Tax

Shefali Mundra highlights that paying advance tax is straightforward via the e-filing portal of the Income Tax Department. Taxpayers can easily make payments by following these steps:

  1. Access the Portal: Visit the Income Tax Department’s e-filing portal.
  2. Navigate to Payment: Click ‘e-Pay Tax’ under ‘Quick Links’ or use the search bar.
  3. Enter Details: Provide your PAN, confirm it, and enter your mobile number. Click ‘Continue’.
  4. Authenticate: Input the 6-digit OTP sent to your mobile and proceed.
  5. Select Tax Type: Choose ‘Income Tax’ and click ‘Proceed’.
  6. Specify Details: Select ‘Assessment Year’ (e.g., 2025-26) and ‘Type of Payment’ as ‘Advance Tax (100)’. Click ‘Continue’.
  7. Input Tax Amount: Fill in your tax details.
  8. Choose Payment Method: Pick a payment method and your bank.
  9. Verify & Pay: Review the challan details, edit if necessary, and confirm payment.