Advance tax: Dec 15 is Sunday, can you pay it on Dec 16?

Advance tax payment deadline December 15 is Sunday: Can you pay this third installment of advance tax on December 16?

Taxpayers with an income tax liability of more than Rs 10,000 need to pay advance tax otherwise they will have to pay penal interest and penalties. To pay this advance tax you need to follow a specified quarterly schedule. So, the deadline to pay the third installment of advance tax in the third quarter is December 15, 2024, for FY 2024-25. However, considering the fact December 15, 2024, is a Sunday (a public holiday) many taxpayers may have doubt whether they can make this payment on the next working day which is December 16?

The answer is yes, you may very well pay the advance tax on December 16, 2024, without any penal interest. This flexibility is based on a circular issued in 1994, which has still not been superseded. The circular said if the due date to deposit advance tax falls on a public holiday, then the next working day will be the deadline.

"In cases where the last date for making payment of such instalments (i.e., 15th September, 15th December and 15th March) happens to be a holiday and the assessee pays the due amount of advance tax on the next working day….It is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged," said the Income Tax Department in a circular dated January 14, 1994.

No penalty of penal interest if you pay your advance tax on Dec 16

According to chartered accountant (Dr.) Suresh Surana, in accordance with the said Circular (January 1994), one can deposit the advance tax for the third installment of FY 2024-25 on December 16, 2024 (Monday), since December 15, 2024, falls on a Sunday, without attracting any penalty or interest.

Experts say that per the Circular, the taxpayer can still pay the Advance Tax on 16th December (next working day). "If, however, due to any other reason, even the next day (Monday) is a bank holiday, then the payment must be made on the immediate next working day (i.e., Tuesday - 17th December 2024). The payment made on the immediately following working day will be treated as if it were paid on the due date. This Circular hence promotes a taxpayer-friendly approach by recognizing operational constraints, thereby enhancing compliance without undue hardship. Interestingly, the same Circular is also quoted on the Advance Tax payments Tutorial Page of the Income Tax Website," says Chartered Accountant Himank Singla, Partner, S B H S & Associates.

Data Analysis
Learn Power BI with Microsoft Fabric: Complete Course
By - Prince Patni, Software Developer (BI, Data Science)
Entrepreneurship
Validating Your Startup Idea: Steps to Ensure Market Fit
By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Marketing
Future of Marketing & Branding Masterclass
By - Dr. David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding Consultant
Finance
Value and Valuation Masterclass
By - CA Himanshu Jain, Ex McKinsey, Moody's, and PwC, Co - founder, The WallStreet School
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrow's Innovations
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
AI and Analytics based Business Strategy
By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI
Legal
Complete Guide to AI Governance and Compliance
By - Prince Patni, Software Developer (BI, Data Science)
Finance
AI and Generative AI for Finance
By - Hariom Tatsat, Vice President- Quantitative Analytics at Barclays
Marketing
Performance Marketing for eCommerce Brands
By - Zafer Mukeri, Founder- Inara Marketers
Design
Canva Magic Write: Ideas to Stunning Slides in No Time
By - Prince Patni, Software Developer (BI, Data Science)
Finance
Crypto & NFT Mastery: From Basics to Advanced
By - CA Raj K Agrawal, Chartered Accountant
Web Development
Maximizing Developer Productivity: The Pomodoro Technique in Practice
By - Prince Patni, Software Developer (BI, Data Science)
Strategy
ESG and Business Sustainability Strategy
By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader
Entrepreneurship
Building Your Winning Startup Team: Key Strategies for Success
By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Strategy
Succession Planning Masterclass
By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd.
Web Development
Intermediate Java Mastery: Method, Collections, and Beyond
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
Tally Prime & GST Accounting: Complete Guide
By - CA Raj K Agrawal, Chartered Accountant
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Office Productivity
Advanced Excel Course - Financial Calculations & Excel Made Easy
By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant
Astrology
Vastu Shastra Course
By - Sachenkumar Rai, Vastu Shashtri

Inocome Tax Advance TaxSource: Income Tax India on X (formerly Twitter)

What is the due date to deposit advance tax

The table below shows the the timeline for payment of advance tax:

Due Date	Advance tax payment percentage
On or before June 15	15% of the net estimated tax liability
On or before September 15	45% of the net estimated tax liability minus advance tax already paid
On or before December 15	75% of net estimated tax minus advance tax already paid
On or before March 15	100% of net estimated tax minus advance tax already paid

Better to use online platform to make advance tax payment on time

Though you can make payment next day however it is now possible make payment online even on a holiday. "However, it is important to note that this Circular is quite dated, and since online payment facilities are now widely available. Though, this circular has not been superseded, yet practically there may be levy of interest under section 234B and 234C as it is a system driven computation. Taxpayers are encouraged to make payments within the stipulated deadlines or seek clarifications from their assessing officers to avoid any potential issues," says Surana.

This story originally appeared on: India Times - Author:Faqs of Insurances