Advance Tax Payment Deadline Today: Everything You Must Know Before It’s Too Late
Today is a very important day for taxpayers, because the deadline for advance tax payment has arrived. 15 September is not just another date, but it is the day when thousands of taxpayers stand in queue for their income tax payment. Many people are confused whether they have to pay advance tax or not, and what will happen if the deadline is missed. If you are also looking for the answer to this question, then in today’s article you will get every detail in simple and human language.
Advance Tax Payment Deadline Today: What is the Importance?
15 September brings a double challenge as it coincides with the ITR filing deadline and the due date for advance tax payment. For taxpayers whose tax liability is more than ₹10,000, it is mandatory to pay advance tax as per the rules of the Income Tax Department. This system benefits the government with regular tax collection throughout the year and is also helpful for taxpayers as they are not under pressure to pay a large amount at one go.
Advance Tax Payment: Who should make it?
Not every taxpayer is required to make advance tax payment. If you are a salaried individual, your tax is generally deducted through TDS. But if you have extra income, such as capital gains, property rent, or if you run a business, then you have to deposit this advance tax on your own.
Freelancers and consultants also fall in this category. If their annual liability crosses ₹10,000, then they too will have to pay advance tax. Yes, there is a relief for senior citizens. If you are above 60 years and you do not have business income, then you do not have to bear this burden.
Advance Tax Payment: How much and when to pay?
The Income Tax Department has divided the advance tax payment into 4 instalments, so that the burden becomes manageable for taxpayers.
It is mandatory to pay 15% liability by June 15. By today’s date, 15 September, you have to clear 45% of your total expected liability. Then on 15 December this percentage becomes 75%, and by the last deadline, 15 March, you have to complete your full 100% income tax payment.
For example, if your annual tax liability is ₹1 lakh, then you have to pay ₹15,000 in June. By today, you have to pay another ₹30,000, so that the total ₹45,000 is covered.
What will happen if you miss the Advance Tax Payment?
The biggest question is what penalty will be imposed if you miss the deadline of 15 September? Under Section 234C of the Income Tax Act, if you do not pay the required 45% advance tax, you will be penalized for shortfall at the rate of 1% per month. This penalty continues till December until you pay the next tranche.
If you still do not pay 90% of the advance tax by the deadline of March, then Section 234B is activated. Here also an additional penalty of 1% will be imposed until you file your ITR. This means that delay will only empty your pocket further.
What is the benefit of advance tax payment?
Many taxpayers think why not pay their entire income tax at the end of the year. But this is a risky approach. Firstly, there is the fear of penalty, secondly the burden also becomes more than the income. When you pay advance tax in installments, you can balance your cash flow and do not get into financial stress due to income. This process is also beneficial for the government, because regular inflow makes planning easy for them.
What is important to do today?
If you have not yet cleared your advance tax payment, then immediately do your calculation and make the payment. This process can be completed today itself through online portals such as Income Tax e-filing website or net banking. Every day’s delay can result in an extra penalty for you, and avoiding that burden is the best option.
Final Thoughts on Advance Tax Payment
The deadline of 15 September is not just a reminder, but a responsibility. If you are eligible and you have not made your advance tax payment on time, then its impact will be directly on your financial planning. Apart from penalties, an unnecessary stress is also created. So whether you are salaried, freelancer or businessman, taking your taxes seriously will be beneficial for you.
Disclaimer:
This article is written for informational purpose only. Readers should consult their financial advisor or chartered accountant before making any advance tax payment or income tax-related decisions.
Also Read
New Income Tax Bill 2025: Top Parliamentary Panel Suggestions & Key Changes
