The Income Tax Department, on its official X handle, has alerted taxpayers to pay their last installment of advance tax for the financial year 2024-25. The last date to pay the advance tax is March 15, 2025. The I-T department has said that taxpayers paying on time not only save themselves from penalties but also contribute towards the “Viksit Bharat Movement”.
What is advance tax?
Advance tax is the income tax that individuals and businesses have to pay in installments throughout the financial year, rather than paying it in a lump sum at the end of the financial year. It is also called the “earn and pay tax” system. If your total tax liability exceeds a certain limit, you are required to pay advance tax.
How to know whether you have to pay advance tax or not?
If you are employed and TDS is being deducted from your salary, then you may not need to pay advance tax. But if you have any other income apart from salary, such as rental income, capital gains from stock market or property, income from freelancing or business, then you may have to pay advance tax.
Similarly, if you are a doctor, lawyer, consultant, freelancer or run a business, then advance tax will have to be paid.
Also read: Income Tax crackdown! Donors to political parties under scanner – Are you on the list?
According to CA (Dr.) Suresh Surana, “Section 208 requires every person whose estimated tax liability for the year is Rs 10,000 or more to their tax in advance, in the form of ‘advance tax’. However, a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax.”
Accordingly, the taxpayers need to pay such advance tax on or before the following dates as given below.
15% of total tax liability – On or before June 15
45% of total tax liability – On or before September 15
75% of total tax liability – On or before December 15
100% of total tax liability – On or before March 15
“For taxpayers who have opted for the presumptive taxation scheme under section 44AD &
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