According to Income Tax regulations, those individuals having a total tax liability on income from sources other than salary of over Rs 10,000 for the financial year need to pay tax in advance.
The Income Tax Department has issued a reminder regarding the last quarterly instalment of advance tax for the financial year 2024-25. The IT Department said that the final installment of advance tax must be paid by March 15, 2025.
This means only two days remain (excluding today) to make the payment.
“Kind Attention Taxpayers! The final instalment of Advance Tax for FY 2024-25 is due by 15th March 2025. Timely payment ensures your compliance with tax laws and supports the ‘Viksit Bharat Movement,’ driving India’s journey towards self-reliance and prosperity,” the Income Tax department said in a post on X (formerly Twitter).
Who needs to pay advance tax?
According to Income Tax regulations, those individuals having a total tax liability on income from sources other than salary of over Rs 10,000 for the financial year need to pay tax in advance.
Employers deduct and remit advance tax on salary to the income tax department.
However, employers must ensure that they declare their additional income to the employer so that they can deduct the correct TDS. As the tax is already taken care of by the employer, the employees don’t need to pay any advance tax.
However, in case the tax deducted is less than the actual tax, salary individuals may have to pay huge interest under Sections 234C.
Due Date Advance Tax Liability
- On or before 15th June 15 per cent of the assessed tax
- On or before 15th September 45 per cent of the assessed tax
- On or before 15th December 75 per cent of the assessed tax
- On or before 15th March 100 per cent of the assessed tax
Penalty and interest if you fail to pay
| Due date of Installment | Amount Payable | Minimum Amount Payable for Non-applicability of Interest u/s 234C of IT Act | Interest Payable u/s 234C of IT Act |
| On or before 15th June | 15 per cent | 12 per cent | 1 per cent x 3 months x shortfall in tax |
| On or before 15th September | 45 per cent | 36 per cent | 1 per cent x 3 months x shortfall in tax |
| On or before 15th December | 75 per cent | 75 per cent | 1 per cent x 3 months x shortfall in tax |
| On or before 15th March | 100 per cent | 100 per cent | 1 per cent x 1 month x shortfall in tax |