Due Dates for Advance Tax Payment
In
India, advance tax refers to paying a part of your annual income tax
liability in installments throughout the year. The system of advance tax is
applicable to taxpayers whose total tax liability in a financial year exceeds
₹10,000. Advance tax is paid in four installments, based on the estimated
income of the year. The due dates for advance tax payments are as follows:
Due Dates for Advance Tax Payment
- First Installment – 15th June
- Amount: 15% of the total
advance tax liability
- This installment
is due by June 15, based on your estimated income for the first quarter
(April to June).
- Second Installment – 15th
September
- Amount: 45% of the total
advance tax liability
- By September 15,
taxpayers are expected to pay a cumulative total of 45% of their
estimated tax liability, considering the income earned till the end of
the second quarter (July to September).
- Third Installment – 15th December
- Amount: 75% of the total
advance tax liability
- The third
installment is due by December 15, with the cumulative amount now at 75%
of the total liability, considering income up to the end of the third
quarter (October to December).
- Final Installment – 15th March
- Amount: 100% of the
total advance tax liability
- The final
installment is due by March 15, which completes the advance tax payment
for the financial year (April to March).
Important Points
- No Interest: If the taxpayer
fails to pay the advance tax by the due date, they may be liable for
interest under Sections 234B (interest for default in payment of
advance tax) and 234C (interest for deferring advance tax).
- No Advance Tax for
Salary Earners: Taxpayers whose income is primarily through salary and where tax is
deducted at source (TDS) by the employer typically don’t need to pay
advance tax, unless they have additional income.
- Quarterly Payments: The payments are
based on the taxpayer's estimated income. Therefore, if you earn income
irregularly or from multiple sources, ensure accurate forecasting for tax
payments.
If
advance tax is not paid as per the due dates, taxpayers can still make the
payment but would be liable for interest on the overdue amount.
Note: If the due date falls
on a weekend or public holiday, the due date is extended to the next working
day.
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