Advance tax deadline is on Sunday June 15, can you pay it on Monday June 16 without any penal interest?
No penalty of penal interest if you pay your advance tax on June 16?
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January 14, 1994 circular
Advance tax due dates for FY 2025-26
Due Date
Advance tax payment percentage
On or before June 15
15% of the net estimated tax liability
On or before September 15
45% of the net estimated tax liability minus advance tax already paid
On or before December 15
75% of net estimated tax minus advance tax already paid
On or before March 15
100% of net estimated tax minus advance tax already paid
Those who have an income tax liability of more than Rs 10,000 need to discharge this tax liability by paying advance tax through four scheduled installments. The due date for the first installment of advance tax payment for FY 2025-26 is on June 15, 2025 which is a Sunday. Since Sunday is a public holiday banks are closed, which means you can't use the bank challan or physical NEFT/IMPS method to pay advance on June 15, 2025.Moreover, Saturday i.e. June 14, 2025 is also a bank holiday due to the 2nd Saturday. Hence considering these two facts many taxpayers may have doubts whether they can make this payment without any penal interest on the next working day which is June 16, 2025?The answer is yes, you may very well pay the advance tax on June 16, 2024, without any penal interest but this decision can be challenged by the tax department. This flexibility is based on a circular issued in 1994, which has still not been superseded. The circular said if the due date to deposit advance tax falls on a public holiday, then the next working day will be the deadline.According to chartered accountant (Dr.) Suresh Surana, in accordance with the Circular no. 676 of January 14, 1994, one can deposit the advance tax for the first installment of FY 2025-26 on June 16, 2024 (Monday), since June 15, 2024, falls on a Sunday, without attracting any penalty or interest.S. Sriram, Partner, Lakshmikumaran & Sridharan, however sounds a word of caution. "The general principle in law is that, if a statutory due date falls on a holiday, the obligation can be performed on the next working day. In other words, if the due date for payment of taxes falls on a Sunday, the general understanding is that the taxes can be paid on Monday. The CBDT has clarified it vide a Circular issued in 1994. However, with the changes in law, all companies and other tax payers subject to audit under the Income-tax regulations, are mandatorily required to pay their taxes (including advance taxes) only through electronic medium.'Sriram adds: 'So, unless the taxes are remitted though NEFT/RTGS by physically visiting the branch of a bank, the general principle that the taxes can be paid on Monday might not automatically apply to every fact situation. It is possible for the Revenue Authorities to levy interest on delayed payment of taxes, more particularly when the tax payer is a company, or a person liable to tax audit."Chartered Accountant Ashish Karundia says: "Since 15th June 2025 falls on a Sunday, taxpayers might consider paying the first instalment on 16th June 2025, relying on CBDT Circular No. 676 dated 14 January 1994. The tax authorities may, though, argue that, with the availability of electronic payment facilities, unlike in the past when the circular was issued, interest could still be levied for the one-day delay."Though you can make payment the next day however, it is now possible to make payment online even on a holiday. "However, it is important to note that this Circular is quite dated, and since online payment facilities are now widely available. Though, this circular has not been superseded, yet practically there may be levy of interest under section 234B and 234C as it is a system driven computation. Taxpayers are encouraged to make payments within the stipulated deadlines or seek clarifications from their assessing officers to avoid any potential issues," says Surana."In cases where the last date for making payment of such instalments (i.e., 15th September, 15th December and 15th March) happens to be a holiday and the assessee pays the due amount of advance tax on the next working day….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," said the Income Tax Department in a circular dated January 14, 1994.Source: Circular 676 of 1994
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