The deadline for paying the third instalment of advance tax is quickly approaching, with just two days left until December 15. It is crucial for taxpayers who are required to pay advance tax to make their payments by this date, as failure to do so can result in penalties and interest for delay.
Individuals who are projected to have tax liabilities of ₹10,000 or more, after accounting for tax deducted at source (TDS) from the previous year, are required to pay advance tax, as stated in Section 208 of the Income Tax Act, 1961.
If there is a default in paying the advance tax, penal interest is levied. This interest is governed by Sections 234B and 234C and is charged at a rate of 1% per month or part thereof.
However, resident senior citizens who are 60 years of age or older during the relevant financial year and do not have income from business or profession are exempt from the requirement of paying advance tax.
Advance tax due dates for FY 2023-24
Advance tax is different from normal tax payment in that it does not have to be paid in a lump sum once a year. Instead, it is paid in instalments throughout the year. The Income Tax Department determines the dates on which these instalments are due.
| Due Date | Advance tax payment (%) |
| On or before June 15 | 15% of advance tax |
| On or before September 15 | 45% of advance tax (-) advance tax already paid |
| On or before December 15 | 75% of advance tax (-) advance tax already paid |
| On or before March 15 | 100% of advance tax (-) advance tax already paid |
For the financial years 2022-23 and 2023-24, the due dates for advance tax payments are June 15, September 15, December 15, and March 15.
How to pay advance tax online?
- Go to the official e-filing portal of the Indian Income Tax Department.
- Look for the ‘Quick Links’ section on the left side of the home page and click on ‘e-Pay Tax’. Alternatively, you can use the search bar to find the ‘e-Pay Tax’ option.
- Enter your PAN (Permanent Account Number) and confirm it by entering it again. Provide your mobile number and click ‘Continue’.
- You will receive a 6-digit OTP (One-Time Password) on your mobile number. Enter this OTP and click ‘Continue’.
- Select the ‘Income Tax’ option from the checkboxes and click ‘Proceed’.
- Choose the Assessment Year as 2024-25 and the ‘Type of Payment’ as ‘Advance Tax (100)’. Click ‘Continue’.
- Fill in all the required tax details.
- Select your preferred payment method and bank, and click ‘Continue’.
- Review the challan details and click ‘Pay Now’. If needed, you can edit the details before proceeding.
- After the payment is completed, you will receive an acknowledgement on the next screen. Save a copy of the tax receipt, which contains the BSR code and challan serial number, for future reference. These details will be required when filing your tax return.
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Published: 14 Dec 2023, 12:39 PM IST
