Advance Tax Deadline Today: What Happens If You Miss?

A reminder has been issued by the Income Tax Department saying that the final installment for the fiscal year 2024-25 (FY25) needs to be settled by March 15, 2025.

Today, is the last day to settle any outstanding advance tax obligations.

Taxpayers need to pay tax in advance if the total tax liability on income from sources other than salary exceeds Rs 10,000 for the financial year, as per tax regulations.

Typically, employers deduct and remit advance tax on salary to the income tax department.

Who Is This Deadline For?

The deadline of March 15, 2025 for paying advance tax is for taxpayers that are enrolled in the presumptive taxation scheme (Section 44AD/ 44ADA). Taxpayers need to make sure that full advance tax payment is made for the Assessment Year 2025-26.

Additionally, government sector offices deducting TDS/TCS for February 2025 also need to submit form 24G by March 15, 2025.

What Is The Presumptive Taxation Scheme?

According to sections 44AA of the Income Tax Act, 1961, a person engaged in business or profession is required to make regular books of account under certain circumstances.

To provide relief to small taxpayers from this tedious job, the Income-tax Act has framed the presumptive tax scheme.

What Happens If You Miss The Deadline?

Taxpayers that fail to pay their advance taxes and default in payment of advance tax on the due date interest shall be levied u/s 234B and 234C, as applicable.

What Does The Income Tax Department Say?

In a post on X, the IT Department said that paying on time not just upholds compliance with tax regulations but also strengthens the 'Viksit Bharat Movement', contributing to India's vision of self-reliance and prosperity.

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