Missed advance tax deadline? To avoid another interest charge you must pay off any remaining advance tax liability before March 31

advance income tax for FY 2024-25 but you can still pay the last quarter’s due advance tax. This payment will attract interest under Section 234C. However, despite this interest amount you will end up paying less than what you would pay after 31 March. In case you do not pay the last quarter’s advance tax by March 31, 2025 then additional interest under Section 234B will also be levied from April 1, 2025. Advance tax has to be paid by every taxpayer whose total tax liability is above Rs 10,000 in a financial year.

To save on unnecessary interest cost, you must pay it now if possible.

What happens if you pay advance tax after March 15, 2025 but before March 31, 2025?

Interest under Section 234C needs to be paid if you are paying advance tax after the deadline of March 15, 2025. Under Section 234C interest at 1% rate per month or part of the month on the amount of deferred tax needs to be paid if the advance tax is paid after the deadline is over.

Advance tax deadline March 15, 2025: These salaried individuals don’t need to pay the advance tax unless circumstances changed; Know how

How is interest calculated under Section 234C for shortfall in payment of advance tax?

CA (Dr.) Suresh Surana explains that under Section 234C if the advance tax paid by the taxpayer on or before March 15, 2025 is less than the tax due, then, the taxpayer shall be liable to pay simple interest at the rate of one per cent on the amount of the shortfall from the tax due.

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Surana explains using an example: 75% Tax liability