Final Advance Tax Payment Due Today: Avoid Penalties
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Synopsis
In New Delhi, the final installment of advance tax for FY 2024-25 is due today, March 15. Failure to pay may lead to penalties as outlined by the Income Tax department. Taxpayers must assess their total income, including capital gains and interest, to ensure compliance.
Key Takeaways
- Final advance tax installment due today.
- Penalties apply for late payments.
- Senior citizens without business income are exempt.
- Advance tax depends on total income, not just salary.
- Payments can be made online using PAN.
New Delhi, March 15 (NationPress) The deadline for submitting the final installment of advance tax for the financial year 2024-25 is today, March 15. Not meeting this deadline may result in a penalty, as informed by the Income Tax department.
According to the Income-Tax (I-T) Act, 1961, individuals anticipating a tax liability exceeding Rs 10,000 during the year are mandated to pay advance tax.
This obligation extends to salaried taxpayers, as their employers typically withhold tax only from salaries, excluding additional income sources like capital gains or interest from fixed deposits.
However, there is an exemption for senior citizens who do not derive income from businesses or professions; they are not required to pay advance tax. For all others, advance tax is calculated based on total income earned throughout the year, with the final payment for FY 2024-25 due today.
Tax payments are divided into four installments during the financial year, due on June 15, September 15, December 15, and March 15. The initial installment due by June 15 requires 15% of the estimated tax liability to be paid.
By September 15, 45% of the total tax should be settled, followed by 75% by December 15, and 100% by March 15. For salaried individuals, employers deduct tax at source (TDS), which may not account for other earnings such as rent, interest, and capital gains.
Thus, taxpayers must assess their advance tax obligations based on all income sources, not solely their salary.
To make the payment, taxpayers can access the official Income Tax Department website. After registering their PAN, they can select the ‘e-pay tax’ option and choose ‘Advance Tax (100)’ as the payment type.
It is crucial to select the correct assessment year (2025-26) when making the advance tax payment. Taxpayers who miss the March 15 deadline can still pay by March 31, but will incur interest for one month according to Section 234C of the I-T Act.
Interest at 1% per month will be applied on any shortfall in advance tax paid by the respective due dates: June 15, September 15, December 15, and March 15.
A penalty will be enforced if the tax paid is less than 12%, 36%, 75%, and 100% of the total due by these corresponding dates.
