It is already 15th of March and financial year 2024-25 is about to end soon. All Taxpayers in India are reminded that today is the final deadline for paying the last installment of Advance Tax. This is very important for individuals with an estimated tax liability exceeding Rs 10,000 this year.
Who Needs to Pay Advance Tax?
The advance tax applies to all income sources beyond regular salary, including:
- Rent
- Capital Gains
- Dividends
- Interest Income
- Business or Professional Income
Yes, salaried individuals also need to pay advance tax if they have income from these additional sources. Employers deduct tax from salaries, but other income sources require self-assessment and payment of advance tax.
Payment Schedule
Advance tax is paid in four installments:
- June 15: 15% of the estimated tax liability
- September 15: 45% of the tax liability (minus advance tax already paid)
- December 15: 75% of the tax liability (minus advance tax already paid)
- March 15: 100% of the tax liability (minus advance tax already paid)
Special Considerations
- Presumptive Taxation Scheme: Self-employed individuals under this scheme can pay their full advance tax by March 15.
- Senior Citizens: Those aged 60 or above without business income are exempt from paying advance tax.
How to Pay
- Register on the Income Tax e-filing portal using your PAN.
- Click on ‘e-pay tax’ and select ‘Advance Tax (100)’ as the payment type.
- Follow the instructions to complete the payment.
Penalties for Missing the Deadline
- Missing the March 15 deadline can lead to penalties:
- Simple interest of 1% per month on underpaid or unpaid advance tax.
- Additional interest if paid after March 31 or at the time of filing income tax returns.
Don’t miss this critical deadline to avoid financial penalties and ensure compliance with tax regulations. Pay your advance tax installment by March 15 to support India’s vision of self-reliance and prosperity.
