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HomeNewsAdvance tax liability: You need to pay advance income tax by this...

Advance tax liability: You need to pay advance income tax by this date to avoid penalties

Mar 12, 2024 12:09 AM IST

Advance Income Tax: Taxpayers need to pay advance tax in four specified instalments: June, September, December and March of the financial year.

Advance Income Tax: Annual income and annual tax liability result in the decision on whether you need to pay advance tax or not. In case a taxpayer’s annual tax liability for the financial year after subtracting tax deducted at source (TDS) is more than 10,000, they need to pay advance tax so that they can avoid penal interest.

Advance Income Tax: The last date for paying fourth instalment of advance tax this financial year is March 15.
Advance Income Tax: The last date for paying fourth instalment of advance tax this financial year is March 15.

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How is advance income tax paid?

Taxpayers need to pay advance tax in four specified instalments: June, September, December and March of the financial year. The last date for paying fourth instalment of advance tax this financial year is March 15.

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When do you not need to pay advance income tax?

Senior citizens who do not have any income from business or profession and taxpayers who have opted for the presumptive taxation scheme under section 44AD or 44ADA don’t have to pay advance income tax. Salaried individuals whose TDS is deducted need not pay any advance tax in most cases.

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Is there a penalty for not paying advance income tax?

If a taxpayer misses to pay advance tax amount and instalments within the specified deadline, there have to pay penal interest. Interest under section 234C is levied at 1% rate per month for three months and interest will be levied if a taxpayer has failed to pay advance tax or paid less than 90% of the assessed tax of the individual as well.

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Income tax return deadline

The deadline for submitting an updated income tax return (ITR) is on March 31, 2024. This provision allows taxpayers who missed filing their return to file an updated ITR or ITR-U. Therefore, if taxpayers missed filing it for financial year 2020-21, they can do the same now till March 31.

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