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Taxpayers have until the end of today, June 15, to pay the first instalment of advance tax for the financial year 2024-2025.
The advance tax is the tax paid within the same financial year in which the income is earned.
It is paid in four instalments throughout the year: 15% by June 15, 45% by September 14, 75% by December 15 and 100% by March 15.
Any assessee, including salaried employees, whose tax liability for the financial year as reduced by tax deducted/collected at source is ₹10,000 or more is required to pay advance tax.
Also, individuals who have sources of income other than their salary are required to pay advance tax.
This includes income from rent, capital gains, fixed deposits, lottery winnings, etc.
Resident senior citizens (an individual of the age of 60 years or above) not having any income from business or profession are not liable to pay advance tax.
Salaried persons who don’t have any income other than salary also need not pay advance tax instalments as employers deduct the applicable tax from the monthly salary.
Failing to pay the required advance tax instalment results in additional interest charges.
Section 234C: Imposes an interest of 1% on the shortfall in the instalment amount for each month or part thereof of delay in payment.
Section 234B: If the taxpayer pays less than 90% of the assessed tax by the end of the financial year, they will be required to pay an additional 1% interest per month on the shortfall for each month of the assessment year until the shortfall is cleared.
It's important to note that even a part of a month is considered a full month for the purpose of calculating interest.
Source: Deadline to pay 15% advance tax ends today — Here's what happens if you miss this deadline