The final deadline for paying the last installment of advance tax for the financial year isMarch 15. Taxpayers who have a total tax liability of more than тВ╣10,000 in a financial year are required to pay advance tax to the government in installments instead of paying the full amount at the end of the year.
Advance tax is applicable to salaried individuals with additional income, freelancers, professionals, business owners, and people earning income from rent, capital gains, or interest. If the required tax is not paid on time, the Income Tax Department may charge interest under Sections 234B and 234C.
Under the advance tax system, taxpayers are expected to estimate their annual income and pay taxes in four installments during the year. TheMarch 15 payment is the fourth and final installment, where taxpayers should ensure that at least 100% of their estimated tax liability has been paid.
Experts advise taxpayers to review their income, calculate any remaining tax liability, and make the payment before the deadline to avoid extra interest and penalties. Payments can be made easily through the official Income Tax e-filing portal.
Missing the March 15 deadline could result in additional interest charges, so taxpayers are encouraged to complete their advance tax payments promptly.
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