Advance tax deadline on December 15: What will happen if you miss it? Check details inside

The advance tax payment deadline for the fiscal year 2024–2025 is December 15, 2024. However, since December 15 is a Sunday, taxpayers get an automatic extension to the next working day, December 16, 2024, without any penalty or interest. This comes as a relief for firms, freelancers, and salaried individuals required to comply with income tax laws.

Advance tax, also known as “pay as you earn” tax, is paid in installments during the financial year. It applies to anyone—individuals or companies—whose total tax liability exceeds Rs 10,000 annually. The payment schedule is as follows:

15% of the total tax by June 15

45% of the total tax by September 15 (including earlier payments)

75% of the total tax by December 15

100% of the total tax by March 15

As per a circular issued by the Income Tax Department in 1994, if a tax payment deadline falls on a day when banks are closed, taxpayers are allowed to make the payment on the following working day without incurring penalties under sections 234B and 234C of the Income Tax Act.

For easy payment, taxpayers can follow these steps:

1. Visit the Income Tax Department’s website and select “e-Pay Tax.”

2. Enter your registered mobile number, PAN, and verify using OTP.

3. Under “Advance Tax (100),” input the payable amount.

4. Choose your preferred payment method, verify details, and complete the transaction.