New Delhi: Income Taxpayers who pay Advance Tax must take note of the deadline for payment of the second instalment. Advance tax entails payment of income tax in advance based on self-assessment. Advance tax is paid in 4 quarterly instalments. Taxpayers must pay their second advance tax instalment, equalling 45 per cent oif their estimated tax liability by September 15, 2024.
The deadline for payment of the first instalment of advance tax expired on June 15, 2024. The due date for the third instalment is December 15, 2024. The 4th and final instalment will have to be paid by March 15, 2025, according to the Income Tax department.
Kind Attention Taxpayers!
Do mark your calendar and remember to pay your first instalment of Advance Tax by 15th of June, 2024.#Advancetax pic.twitter.com/4MR4T2Jn3t
— Income Tax India (@IncomeTaxIndia) June 11, 2024
What happens if you miss advance tax payment deadline
Failing to pay the respective advance tax instalment by the due date results in accrual of penalties. The taxpayer will have to pay a 1 per cent monthly simple interest on the tax amount due. Taxpayers are required of pay 75 per cent of the total estimated tax liability by December 15, 2024, and 100 per cent of the liability by March 15, 2025.
How to pay Advance Tax?
Follow these steps to file Advance Tax before September 15, 2024:
To pay your Advance Tax, visit the income tax filing portal.
Enter your registered ID and password
Choose your assessment year
If you are paying tax for FY2024-25, then the tax for the assessment year will be 2025-26.
Choose the type of payment as ‘advance tax’
Now click on continue and complete the payment
Advantages of Advance Tax payment
Advance Tax payment is useful for any taxpayer whose net tax liability exceeds Rs 10,000. Net tax liability is calculated by subtracting the tax deducted at source from the estimated tax sum. Advance tax helps to avoid last-minute rush of tax payments. Advance tax payment ensures that the government has enough liquidity for development activities throughout the year instead of receiving that sum in a lump sum at the end of the year.
Advance Tax deadline: The last date for payment of the second instalment of advance taxes is just 4 days away. Know who to file taxes and how to file them. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
