Advance tax first instalment payment deadline: Who has to pay, penalty for missing last date

economictimes.indiatimes.com:

Advance tax means paying your income tax in installments throughout the year, rather than all at once at the end of the year. This is also known as «pay as you earn» tax because you pay as you receive income. The tax laws specify when these installments are due.

The first instalment of advance tax payment for this fiscal year is June 15, 2025.

Who has to pay advance tax

Individuals with a net income tax liability of more than Rs 10,000 in any financial year are obligated to make advance tax payments. The net tax liability is the estimated tax amount minus the TDS (tax deducted at source) within the financial year. As per the Income Tax Act, 1961, these individuals must make four specific quarterly payments to prevent incurring penal interest. penal interest.

However, not all individuals with net income liability above Rs 10,000 in an FY must pay advance tax. The income tax laws allow certain exemptions

Also read: Have you checked your advance tax liability? Pay by this date to avoid penalties

Who does not have to pay advance tax

Individuals are required to pay advance tax in four quarterly payments between June 15 and March 15 of the financial year as per Section 211 of the Income Tax Act. However, individuals who opt for the presumptive taxation scheme must pay advance tax in one payment by the 15th of March. Additionally, senior citizens (individuals aged 60 or more) are not required to pay advance tax if they do not have any income from business or profession.

What are the dues dates of advance tax