Is your advance tax filing pending? Today marks the final chance for 4th instalment

Advance tax deadline: Is your advance tax filing still pending? March 15 marks the final deadline. The Income-Tax Act 1961 mandates individuals to make advance tax payments in four instalments: June, September, December, and March of any financial year. 

Advance tax, often dubbed "pay as you earn" tax, is required if one's estimated annual tax liability exceeds Rs 10,000 after deducting TDS. NRIs with income in India exceeding Rs 10,000 are also obligated to pay advance tax.

For those unsure about the amount owed, visiting the compliance portal can help ascertain the precise sum. Resident senior citizens without business or professional income are exempt from advance tax. When calculating advance tax liability, deductions under Section 80C can be considered.

Kind Attention Taxpayers!

The last date for payment of the last instalment of Advance Tax is almost here!

Do remember to pay the fourth instalment of Advance Tax by 15th March, 2024. pic.twitter.com/1vL19iADAy

— Income Tax India (@IncomeTaxIndia)

Late payment penalty

According to Section 234B of the Income Tax Act, taxpayers are required to pay at least 90 per cent of their total taxes as advance tax by March 31 of each fiscal year. Failure to fulfill this obligation incurs an interest penalty of 1 per cent on the unpaid amount.

Additionally, under Section 234C, individuals who miss or delay advance tax payments face further interest charges. These penalties are calculated based on specific rates and periods. If the advance tax paid by June 15 is less than 15 per cent of the total amount owed, a 1 per cent per month interest penalty is applied for three months, calculated on 15 per cent of the outstanding amount minus the tax paid before June 15. 

Similarly, if the advance tax paid by September 15 is less than 45 per cent, by December 15 less than 75 per cent, or by March 15 less than 100 per cent, the same 1 per cent per month interest rate is applied for respective periods, calculated on the specified percentages of the outstanding amount minus the tax paid before each deadline.

Step-by-step advance tax filing

1. Go to the e-filing portal of the Income Tax department
2. on the section labeled e-tax portal
3. Enter your PAN in the provided box and confirm it by entering it again
4. Input your mobile number and proceed by ing on Continue
5. Enter the six-digit OTP received on your mobile device and Continue
6. Proceed to the first box labeled Income Tax
7. Choose the assessment year as 2024-25 and select the payment type as Advance Tax
8. Provide all the required text details and continue
9. Select a suitable payment method and press continue
10. Once the payment is completed, an acknowledgment will appear on the screen
11. Make sure to save this receipt for future reference and when filing your Income Tax Return (ITR)