Advance tax deadline is December 15: Here's a step-by-step guide to help you pay on time
The deadline for paying the third instalment of advance tax is quickly approaching, with just two days left until December 15. It is crucial for taxpayers who are required to pay advance tax to make their payments by this date, as failure to do so can result in penalties and interest for delay.
Individuals who are projected to have tax liabilities of ₹10,000 or more, after accounting for tax deducted at source (TDS) from the previous year, are required to pay advance tax, as stated in Section 208 of the Income Tax Act, 1961.
If there is a default in paying the advance tax, penal interest is levied. This interest is governed by Sections 234B and 234C and is charged at a rate of 1% per month or part thereof.
However, resident senior citizens who are 60 years of age or older during the relevant financial year and do not have income from business or profession are exempt from the requirement of paying advance tax.
Advance tax is different from normal tax payment in that it does not have to be paid in a lump sum once a year. Instead, it is paid in instalments throughout the year. The Income Tax Department determines the dates on which these instalments are due.
For the financial years 2022-23 and 2023-24, the due dates for advance tax payments are June 15, September 15, December 15, and March 15.
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