Advance Tax Payment: What Happens If You Miss December 15 Tax Deadline? Avoid Trouble, Check Details

New Delhi: The advance tax payment deadline is just three days away—December 15. If you miss this date, you might have to pay penalties and interest for the delay. Wondering what happens if you don’t pay on time? Here’s everything you need to know to stay stress-free and avoid extra charges.

Who Needs to Pay Advance Tax?

If your estimated tax liability exceeds Rs 10,000 after accounting for tax deducted at source (TDS), you are required to pay advance tax. This rule is outlined under Section 208 of the Income Tax Act, 1961. Missing this payment can result in penalties and interest, so it’s important to act on time.

What Happens If You Miss the Advance Tax Deadline?

Failing to pay advance tax on time may lead you to face a penalty under Sections 234B and 234C of the Income Tax Act. The penalty includes interest at 1 per cent per month or part of a month on the unpaid amount. However, there's good news for senior citizens. Individuals aged 60 and above who are retired and have no income from business or profession are exempt from advance tax.

Due Dates of Advance tax payment

Advance tax doesn’t need to be paid all at once—it can be divided into installments throughout the year, based on pre-specified dates. Here's how it works:

- By June 15: Pay 15 per cent of the total tax due.

- By September 15: Pay 45 per cent of the total tax due.

- By December 15: Pay 75 per cent of the total tax due.

- By March 15: Pay 100 per cent of the total tax due.

For the financial years 2022-23 and 2023-24, these due dates remain unchanged, making it easier to plan and stay on track.

How to Pay Advance Tax Online

Follow these simple steps to pay your advance tax online:

- Visit the e-filing portal of the Income Tax Department of India.

- Click on 'e-Pay Tax' in the 'Quick Links' section.

- Enter your PAN, verify it, and provide your mobile number.

- Input the OTP received on your mobile to proceed.

- Select the appropriate tax category under 'Income Tax'.

- Choose the payment type as '100' for Advance Tax.

- Enter the tax amount and select your preferred payment method.

- Review the challan details carefully and click on 'Pay Now'.

- Keep the tax receipt safe for your records.