- By Aditya Pratap Singh
- Thu, 05 Mar 2026 06:14 PM (IST)
- Source:JND
Advance Tax Deadline: Investors whose total tax liability exceeds Rs 10,000 after adjusting tax deduction at source (TDS),andfor whomo only a few days are left. The final deadline for paying advance tax for the outgoing financial year (FY 2025–26) is March 15. The eligible taxpayers have to pay taxes in advance during the financial year--usually in four instalments instead of paying the entire amount at the time of income tax return filing.
Investors often forget to pay taxes in advance, but missing deadlines can result in higher interest and penalties.
Advance tax, also known as the pay-as-you-earn tax system, allows taxpayers to pay their estimated tax liability in ininstalmentsver the course of the financial year as income is received.
Who needs to pay advance tax?
This rule applies when a taxpayer’s total tax liability after adjusting TDS exceeds Rs 10,000 in a financial year. Instead of paying the full tax at the end of the year, the tax must be deposited in scheduled instalments.
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Taxpayers who have income beyond their regular salary fall under the advance tax criteria. Salaried individuals, having additional income from rent, interest on investment, and capital gains, need to pay advance tax within the deadline. Additionally, Freelancers, consultants, other professionals such as doctors, lawyers, chartered accountants, and business owners are also eligible to pay tax in advance.
However, senior citizens do not need to pay taxes in advance,e as people over 60 years of age are exempt from paying advance tax if they do not own a business or professional income.
Advance tax instalments
Advance tax is typically paid in four instalments during the financial year. The deadline for these intallments are June 15--taxpayers need to pay at least 15 per cent of total tax liability, September 15-- 45 per cent of comulative tax amount should be paid, December 15--taxpayers have to pay at least 75 per cent of their tax liabilities by this date, and March 15--the remaing of total 100% of the total tax liability should be paid.
What If You Don't Pay Advance Tax Before the Deadline Ends
If a taxpayer misses the advance tax deadline, he or she will have to be ready to pay interest levied by the Income Tax Department under provisions of the Income Tax Act. As per the rule, taxpayers will be levied interest under Section 234C, which applies to taxpayers who delay or fail to pay advance tax instalments, and under Section 234B, which applies to taxpayer did not pay at least 90 per cent of the total tax liability by the end of the financial year.
The penalty is calculated as 1% interest per month or part of the month on the unpaid tax amount until the liability is cleared.
How to pay advance tax
Paying advance tax is not a big deal; it can be paid online through the official income tax portal. If you are looking to pay the advance tax by yourself, you need to follow the steps mentioned below:
Go to the Income Tax e-filing portal.
Findthe “e-Pay Tax” option and click on it.
In the next step, you need to select Advance Tax, which is known as Challan 100
Now, enter the required information and complete the payment.
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