Advance tax first instalment payment deadline: Who has to pay, penalty for missing last date Net tax liability is the estimated tax amount after deducting the TDS (tax deducted at source) within the financial year. If your total tax liability after considering TDS is more than Rs 10,000, you are expected to pay advance tax
Advance tax means paying your income tax in installments throughout the year, rather than all at once at the end of the year. This is also known as "pay as you earn" tax because you pay as you receive income. The tax laws specify when these installments are due.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} The first instalment of advance tax payment for this fiscal year is June 15, 2025.
Who has to pay advance tax
Individuals with a net income tax liability of more than Rs 10,000 in any financial year are obligated to make advance tax payments. The net tax liability is the estimated tax amount minus the TDS (tax deducted at source) within the financial year. As per the Income Tax Act, 1961, these individuals must make four specific quarterly payments to prevent incurring penal interest. penal interest.However, not all individuals with net income liability above Rs 10,000 in an FY must pay advance tax. The income tax laws allow certain exemptions
Also read: Have you checked your advance tax liability? Pay by this date to avoid penalties
Who does not have to pay advance tax
Individuals are required to pay advance tax in four quarterly payments between June 15 and March 15 of the financial year as per Section 211 of the Income Tax Act. However, individuals who opt for the presumptive taxation scheme must pay advance tax in one payment by the 15th of March. Additionally, senior citizens (individuals aged 60 or more) are not required to pay advance tax if they do not have any income from business or profession.What are the dues dates of advance tax payments?
Here is a look at when an individual is required to pay advance tax and the percentage of advance tax payments.Due DateAdvance tax payment percentageOn or before June 1515% of the net estimated tax liabilityOn or before September 1545% of the net estimated tax liability minus advance tax already paidOn or before December 1575% of net estimated tax minus advance tax already paidOn or before March 15100% of net estimated tax minus advance tax already paid
Hence, for the current FY 2024-25 (AY 2025-26), an individual is required to pay the first advance tax payment by June 15, the second advance tax payment by September 15, the third advance tax payment by December 15 and the final advance tax payment by March 15.
What is the penalty for missing advance tax payment
Penal interest is charged for failing to pay advance tax under sections 234B and 234C. A penal interest of 1% per month or part thereof is imposed in each section. Section 234B applies to delays in advance tax payment or insufficient tax payment, while Section 234C applies to the non-payment or underpayment of individual advance tax installments.Also read: Advance tax penalty: What is the penalty for missing advance tax payment due date
How to make advance tax payments?
You can use the income tax department's e-filing portal to pay your advance taxes. You can make payments online or with an offline bank challan. If you choose the offline bank challan method, you need to download the challan from the e-filing ITR portal first. For online tax payments, you have several options such as debit card, net-banking, RTGS/NEFT, UPI, and credit card. Navigate to e-pay tax on the e-filing portal, select the relevant assessment year, and then choose Advance Tax (100) under the minor head to make the payment.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
