Advance Tax Payment Deadline On December 15: How To Pay, What Happens If You Fail To Pay And More

The deadline for advance tax payment this time is Dec. 15, 2024, Sunday. Taxpayers, including salaried individuals, freelancers and businesses are required to make the payment by the deadline in accordance with the advance tax regulations for the financial year 2024-25. However, since the deadline falls on a Sunday, taxpayers are worried about what happens if one missed it. Here's all you need to know:

What Is Advance Tax?

Commonly known as the 'pay as you earn' tax, advance tax is the income tax which one needs to pay in advance throughout the year in four instalments. The entire payment is required to be made in the same year as income earned.

Individuals and businesses having tax liability of Rs 10,000 and above in a fiscal year need to pay advance tax in four instalments — June 15, Sept. 15, Dec. 15, and March 15 as the deadlines.

Instalments For FY 2024-25

• By June 15: 15% of tax liability

• By Sept. 15: 45% of tax liability (minus the payment made already)

• By Dec. 15: 75% of tax liability (minus the payment made already)

• By March 15: 100% of the tax amount (minus the payment made already)

What If You Miss The Dec. 15 Deadline?

Since the deadline falls on a Sunday, taxpayers are worried about what happens if one misses the upcoming deadline. However, they have little to worry about, as the payment can be made on Dec. 16, the next working day.

An Income Tax circular states that if a deadline for advance tax payment is on a public holiday, the next business day will be automatically made the deadline, without the taxpayer incurring any additional charges or penalties on the same.

"...It is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged," the I-T Department had stated in a circular dated Jan. 14, 1994.

Step-By-Step Guide To Pay Advance Tax

• Visit the portal of the Income Tax Department and click on 'e-Pay Tax' in the 'Quick Links' section.

• Enter your PAN to verify it and provide your registered mobile number.

• Enter the OTP received on your mobile number.

• Select the tax category.

• Enter the amount payable after selecting the payment type as '100' for 'Advance Tax for 100'.

• Select the payment method.

• Review all your details entered and proceed to pay.