7 hours Ago By Zee News
Taxpayers are required to pay 45% of the total tax, including the first installment, by September 15 and the last installment by March 15. New Delhi: The due date for filing the final advance tax installment for the fiscal year 2024–2025 ends today, March 15, 2025. This indicates today is the last date to make the payment.
What is advance tax? Income other than salaries, such as rent, capital gains, business, etc is subject to advance tax. Instead of being paid in full at the end of the fiscal year, it is paid in installments throughout the year. Advance tax is also called "earn and pay tax" system.
What is the deadline to pay advance tax? June 15 is the due date for the first installment, which represents 15% of the entire tax. Taxpayers are required to pay 45% of the total tax, including the first installment, by September 15. By December 15, the third installment, which raises the total sum paid to 75%, must be made.
By March 15, the last installment, which covers the entire 100% tax liability, must be completed. Who needs to pay advance tax? All taxpayers with projected tax liabilities of at least Rs 10,000 (after tax deducted at source, or TDS) from the previous year are required to pay advance tax under section 208 of the Income Tax Act, 1961. You can be exempt from paying advance tax if you have a job and TDS is deducted from your income.
However, advance tax may have to be paid if you have any additional sources of income beyond your salary, such as rental income, capital gains from real estate or the stock market, or income from your business or freelancing. Similarly, advance tax must be paid if you are a doctor, lawyer, or consultant. However, a resident senior citizen, a person of the age of 60 years or above, who does not have any business or professional income during the relevant fiscal year, is exempt from paying advance tax.
What is the penalty for missing advance tax payment? Advance tax payments could be made both online and offline. The advance tax default is subject to penalty interest under sections 234B and 234C. A penal interest of 1% per month or part thereof is levied in each section.
In the event of a delay or shortfall in advance tax payment, Section 234B is imposed. For nonpayment or short payment of individual advance tax installments, Section 234C is applicable. Stay informed on all the latest news , real-time breaking news updates, and follow all the important headlines in india news and world News on Zee News.
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