Installment of Advance tax and due dates

Advance tax payments are made by taxpayers on their estimated income for the financial year before the end of the fiscal year. The due dates for advance tax installments are specified by the Income Tax Department.

Complying with the due dates for advance tax payments is essential to avoid interest and penalties. Taxpayers should regularly assess their income, estimate the tax liability, and make timely payments to ensure smooth financial planning and adherence to tax regulations. It’s advisable to seek professional advice for accurate computation and payment of advance tax, especially in complex income scenarios.

For Individuals (Non-Corporate Taxpayers):

1. First Installment (On or before June 15):
   • 15% of the estimated tax liability for the financial year.
2. Second Installment (On or before September 15):
   • 45% of the estimated tax liability.
3. Third Installment (On or before December 15):
   • 75% of the estimated tax liability.
4. Fourth Installment (On or before March 15):
   • 100% of the estimated tax liability.

For Corporate Taxpayers:

1. First Installment (On or before June 15):
   • 15% of the estimated tax liability for the financial year.
2. Second Installment (On or before September 15):
   • 45% of the estimated tax liability.
3. Third Installment (On or before December 15):
   • 75% of the estimated tax liability.
4. Fourth Installment (On or before March 15):
   • 100% of the estimated tax liability.

Important Points to Note:

• If the assessed tax liability is less than ₹10,000, no advance tax is required to be paid.
• Senior citizens (aged 60 years or more and not having income from business or profession) who do not have income from business or profession are exempt from paying advance tax.
• Taxpayers opting for the presumptive taxation scheme under Section 44AD are not required to pay advance tax in installments. They can pay the entire tax liability by March 15.
• Any shortfall in payment or non-payment of advance tax may attract interest under Sections 234B and 234C.

How to Pay Advance Tax:

1. Online Payment:

   • Taxpayers can pay advance tax online through the official website of the Income Tax Department using the e-payment facility.

2. Challan 280:

   • Physical payment can be made by depositing the tax using Form 280 at designated bank branches. The challan should be filled with relevant details like PAN, assessment year, type of payment, and bank details.