New Delhi:
Advance Tax Installation Payment: If you pay income tax and want no penalty or notice to be faced, then this news is very important for you. The last date for paying advance tax is 15 March 2025. If you did not pay your advance tax within this time, then you will have to pay interest and penalty under Section 234B and 234C.
Many people are confused about the advance tax that who has to fill it, what is its process and what will happen if not filled on time? In this news, we will give you complete information related to advance tax in easy language so that you can understand it without any hassle and pay on time.
What is advanced tax?
Advance tax means that if your annual tax liability is more than Rs 10,000, then you have to deposit the tax in four parts in the whole year. This is a way of tax collection for the government, so that the taxpayers do not get much burden at once and the government should also get revenue regularly.
Which people have to pay advance tax?
Filling advance tax is necessary for all those whose tax liability is more than Rs 10,000. This includes the following people:
- People who do business or freelancing, whose income does not cut TDS.
- People receiving salary, who also have income from other sources, such as rental income, FD interest, profit from stock market or gain of mutual funds.
- NRI, which has any kind of income in India.
- Those people who are going to sell some property between March 15 to March 31, it is also necessary to pay advance tax.
If you have only salary income and TDS is completely cut on it, then you do not need to pay advance tax separately. But if there is any other earning apart from your salary, then you will have to pay advance tax.
How and when to pay advance tax?
Advance tax has to be paid four times in the whole year. It is mandatory to deposit it in four installments.
- First installment – till June 15: By this time you have to deposit 15% of your total tax.
- Second installment – till 15 September: By this time you have to submit 45% of the total tax (including the first installment).
- Third installment – till December 15: By this time you have to fill 75% of the total tax (first and second installment).
- Fourth and final installment – till March 15: By this day you have to deposit at least 90% of your estimated tax.
If you have not paid 90% advance tax till 31 March, then you will have to pay 1% penalty every month from April to Filing ITR.
What will happen if advance tax is not paid on time?
- If you do not pay advance tax on time, then you will have to pay penalty and interest under Section 234B and Section 234C of the Income Tax Act.
- If 90% tax is not deposited by March 15, the government will charge you 1% interest every month.
- If the tax is not deposited till 31 March, then this interest will continue to increase every month till the ITR is filed.
- The Income Tax Department can also send a notice, which can cause you problems.
Therefore, if you do not pay tax on time, then you have to pay both interest and penalty.
How to pay advance tax? (How to pay advance tax online)
If you have to pay advance tax, then you can deposit it online. For this, you have to go to the Income Tax Department website.
- First of all go to https://www.incometax.gov.in website.
- Click on E-Pay Tax option there.
- Enter your PAN number and Aadhaar-Pain Linked Mobile Number.
- Now select Assessment Year 2025-26.
- Choose advance tax in type of payment and click on Continue.
- Fill your tax amount and pay.
- You can pay from net banking, debit card, credit card or UPI.
- After payment, your challan will be generated, which you have to keep at the time of ITR filing.
It is very important to pay advance tax on time so that you can avoid any kind of penalty or interest. The government has made the entire process of depositing advance tax online, which has made it very easy to fill it now. So without delay, pay advance tax now and avoid financial tension.
