New Delhi: Advance Tax payment deadline is decided by the Income Tax deaprtment on a quarterly basis. The last date for the payment of Advance Tax for the ongoing quarter is December 15, 2024. Taxpayers who adhere to Advance Tax payment must deposit up to 75 per cent of their Income Tax by this date.
What is Advance Tax?
Advance Tax can be paid by every individual whose tax deduction for the financial year 2024-25 was Rs 10,000 or more is eligible to pay Advance Tax. Senior citizens who are not employed or in business are not required to pay Advance Tax. Advance Tax payment can be made in both online and offline modes.
Advance Tax payment is a pay-as-you-earn tax regime. Instead of a lump sum payment towards the end of the year, taxpayers are required to pay taxes in instalments every quarter of the financial year. Advance tax enables the government to pursue development activities in time isntead of waiting for the end of year tax payout to pursue such work.
Advance Tax payement delayed
A delay in the payment of Advance Tax incurs 1 per cent interest of the unpaid amount after March 31, 2024, if at least 90 per cent of Advance Tax has not been paid by this date, under section 234B of the Income Tax Act. If the taxpayer fails t pay 15 per cent of tax due by June 15, they wil incur 1 per cent interest per month for 3 months. This will be 15 per cent of the total amount with deduction of tax paid before June 15.
Failing to pay 45 per cent advance tax by September 15, 2024, will invite 1 per cent tax per month of the amount due for 3 months. Failure to pay 75 per cent tax by December 15, 2024, will invite an interest payment of 1 per cent per month on the remaining amount due to be paid.
Advance Tax payment deadline: Income taxpayers must avoid missing the last date for the payment of advance tax. Failure to comply with the deadline results in penalties, according to the Income Tax department. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
