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 4 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 in 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% of the total tax liability by June 15. While 45% has to be paid by September 14. This includes the installment paid in June. By December 15, the liability 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 who have income above their salary, such as rent, capital gains, FDs or lottery winnings, are required to pay advance tax.
What will happen if you do not 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 delays the 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.
Related Articles:-
- TDS Status: Simple Steps to Check TDS Status by PAN Card and Form 26S
- US Green Card Holders Deportation: Green card holders can also be deported from America, Check details
- Landlords New Rule: Government has issued guidelines for landlords, check new guideline
- Bank Holiday: All banks will remain closed for 3 days on 13, 14 and 15 March due to Holi, check the complete list of states
- New Shuttle Service: Metro will start New shuttle service on THIS busy route. Know route & More
