The deadline to pay the third instalment of advance tax is December 15, i.e Friday. The taxpayers required to pay their advance taxes must do it by tomorrow, else they will face penalties and interest for the delay.
What is an advance tax?
An advance tax is a type of income tax paid before the completion of the financial year. Unlike income tax, it is paid in instalments and not in lumpsum.
According to Section 208 of the Income Tax Act, 1961, the individuals projected to have tax liabilities of ₹10,000 or more after accounting for TDS from the previous year, need to pay advance taxes.
It applies to employed people, businessmen, freelances and other taxpayers who earn money in some other way. In case you are above the age of 60 and don’t have any kind of business, you are exempted from advance tax.
Advance tax is to be paid in different instalments. The due dates for payment are as follows:
| Due date | Advance tax payment |
|---|---|
| On or before June 15 | Minimum 15% of advance tax |
| On or before Sept 15 | Minimum 45% of advance tax |
| On or before Dec 15 | Minimum 75% of advance tax |
| On or before March 15 | Minimum 100% of advance tax |
How to pay advance tax online?
Here’s a detailed step-by-step process for paying advance tax online.
1. Log on to the official e-filing portal of the Income Tax department.
2. On the left side of the home page, click on ‘e-Pay tax’.
3. Enter your Permanent Account Number (PAN) and confirm it by entering again. Now, enter your mobile number and click on ‘Continue’. You will receive a six-digit one-time password (OTP) on your mobile number. Enter the OTP and click on ‘Continue’.
4. From the checkboxes, choose ‘Income Tax’ option and click on ‘Proceed’. Select Assessment Year as 2024-25 and the ‘Type of Payment’ as ‘Advance Tax (100)’. Select ‘Continue’.
5. After filling in all the required details, pick the preferred payment method and bank, then click on ‘Continue’.
6. Now, review the challan details and select ‘Pay Now’. After the payment process is completed, you will get an acknowledgement receipt on the next screen.
7. Review the challan details and click ‘Pay Now’. If needed, you can edit the details before proceeding. Save a copy of the tax receipt, which contains the BSR code and challan serial number, for future reference.