Income tax news: What happens if taxpayers fail to pay advance tax payment on December 15? | Mint

Advance tax payment: The deadline to make your advance tax payment is fast approaching — in only three days, on December 15. So, what happens if you fail to pay tax by deadline? You could be liable for penalties and interest for delay.

Thus, we bring you all you need to know to complete the process and a step-by-step guide on how to complete your advance tax payment.

Advance tax payment: Who Must Pay?

All those taxpayers who have a projected tax liability of ₹10,000 and more after tax deducted at source (TDS) are required to pay advance tax. This is specified under Section 208 of the Income Tax (I-T) Act, 1961 and thus failure to make this payment could result in penalties and interest for delay.

Advance tax payment: What Is The Penalty?

Under Sections 234B and 234C of the I-T Act, defaulters will have penal interest levied at the rate of 1 per cent per month or part thereof. There is however, one exemption. Senior citizens aged 60 and above, are exempt from the advance tax payment, if they are not from business or profession, i.e. if they are retired.

Advance tax payment: Due Dates

Unlike the usual I-T payment, advance tax does not have to paid as a lump sum. It can be staggered throughout the year in installments as per pre-determined dates.

• For advance tax payments done on or before June 15 — 15 per cent of the dues can be paid.
• For advance tax payments done on or before September 15 — 45 per cent of the dues can be paid.
• For advance tax payments done on or before December 15 — 75 per cent of the dues can be paid.
• On or before March 15 — 100 per cent of the of advance tax is paid.

For the financial years 2022-23 and 2023-24, the due dates for advance tax payments were June 15, September 15, December 15, and March 15.