Income Tax: Today is the deadline to pay first instalment of advance tax. Check details
Last date to pay first instalment of advance tax is June 15 i.e., today. This is mandatory for taxpayers who require an audit under section 44Ab. Income Tax department has shared a post reminding taxpayers about the same. 'First instalment of advance tax for FY 2025–26 is due by June 15, 2025. Plan Smart. Pay Advance Tax,' reads the post on X.
Failing to pay advance tax is alright so long as the taxpayer files their income tax return by July 31 next year (deadline for this year is Sept 15) and clear their income tax liability along with interest which accrues on account of non payment of advance tax.
Advance tax must be paid in four instalments. The first instalment has to be paid by June 15 when the 15 percent of tax liability must be cleared.
The other deadlines to pay advance tax are September 15, December 15 and March 15.
Taxpayers must clear a minimum of 15 percent of their tax liability by June 15; 45 percent by Sept 15; 75 percent by December 15 and 100 percent by March 15. The table below describes this information in a tabulated form. Date Tax payable (%) June 15 15 Sept 15 45 Dec 15 75 March 15 100
When you do not pay advance tax, you are meant to pay interest at the rate of 1 percent per month. Under section 234C of Income Tax (I-T) Act, taxpayers accrue interest on outstanding tax which accrues at the rate of 1 percent a year annum for tax liability. Payment of advance tax is vital to avoid payment of this 1 percent which obviously becomes 12 percent by the end of the year.
Advance tax should be paid by anyone who is a salaried professional or freelancer or business owner with tax liability of ₹ 10,000 or more.
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