ITR advance tax deadline on December 15: What is it? How to pay tax before due date? Here’s all you need to know

ITR Advance Tax: The deadline for the third instalment of advance tax is December 15, 2024. Taxpayers must pay the advance tax before the due date to avoid penalty.

What is advance tax?

Advance tax is a part of income tax that is paid in instalments at different deadlines rather than paying the entire amount at once. It has to be paid by both individuals and corporates.

Taxpayers with an estimated tax liability of over ₹10,000 in a year, are required to pay tax in installments in the form of advance tax, according to Section 208 of the Income Tax (IT) Act, 1961.

However, senior citizens, i.e., taxpayers above the age of 60 years during the current financial year, who do not have any income from a job or a business, are not required to pay advance tax.

If the liable taxpayers fail to make advance tax payments before the due date, a penalty interest of 1% per month will be levied, according to Sections 234B and 234C of the IT Act.

The deadline for the third instalment of advance tax is December 15, which is Sunday, a holiday. In such a scenario, taxpayers can pay advance tax on the next working day, December 16, Monday.

“If the last day for payment of any instalment of advance tax is a day on which the banks are closed, then the taxpayer should pay the advance tax on the immediately following working day,” according to the provisions relating to payment of advance tax, released by Income Tax Department.

The advance tax is paid in four instalments in a particular financial year. 

Instalment dates for advance tax

First instalment: Advance tax must be paid on or before June 15, comprising 15% of the dues.

Second instalment: Advance tax must be paid on or before September 15, comprising 45% of the dues.

Third instalment: Advance tax must be paid on or before December 15, comprising 75% of the dues.

Fourth and final instalment: Advance tax must be paid on or before March 15, finishing 100 per cent of the dues.

How to pay advance tax?

1. Go to the official website of Income Tax Department.
2. From the Quick Links tab, select the ‘e-pay’ option.
3. Give your details such as PAN, mobile number and select ‘continue’ option.
4. You will receive an OTP on your registered mobile phone. Enter the OTP and select ‘proceed’ option.
5. Click on the ‘Income Tax’ option and select ‘continue’.
6. Fill out your details such as phone number, address, assessment year, email-id, bank name etc.
7. After entering the details, the website will redirect to payment page.
8. Enter the required details, and the payment of advance tax will be completed; you will receive details of it, including the challan number.

For more details about advance tax payments, visit the official website of the Income Tax Department.