Income tax news: What happens if taxpayers fail to pay advance tax payment on December 15? | Mint

Advance tax payment: The deadline to make your advance tax payment is fast approaching — in only three days, on December 15. So, what happens if you fail to pay tax by deadline? You could be liable for penalties and interest for delay.

Thus, we bring you all you need to know to complete the process and a step-by-step guide on how to complete your advance tax payment.

Advance tax payment: Who Must Pay?

All those taxpayers who have a projected tax liability of ₹10,000 and more after tax deducted at source (TDS) are required to pay advance tax. This is specified under Section 208 of the Income Tax (I-T) Act, 1961 and thus failure to make this payment could result in penalties and interest for delay.

Advance tax payment: What Is The Penalty?

Under Sections 234B and 234C of the I-T Act, defaulters will have penal interest levied at the rate of 1 per cent per month or part thereof. There is however, one exemption. Senior citizens aged 60 and above, are exempt from the advance tax payment, if they are not from business or profession, i.e. if they are retired.

Advance tax payment: Due Dates

Unlike the usual I-T payment, advance tax does not have to paid as a lump sum. It can be staggered throughout the year in installments as per pre-determined dates.

• For advance tax payments done on or before June 15 — 15 per cent of the dues can be paid.
• For advance tax payments done on or before September 15 —  45 per cent of the dues can be paid. 
• For advance tax payments done on or before December 15 — 75 per cent of the dues can be paid.
• On or before March 15 — 100 per cent of the of advance tax is paid.

For the financial years 2022-23 and 2023-24, the due dates for advance tax payments weare June 15, September 15, December 15, and March 15.

Step-by-Step Guide: How to Complete Advance Tax Payment

• Go to the official e-filing portal of the Indian Income Tax Department.

Look for the ‘Quick Links’ section on the left side of the home page and click on ‘e-Pay Tax’. Alternatively, you can use the search bar to find the ‘e-Pay Tax’ option.

Enter your PAN (Permanent Account Number) and confirm it by entering it again. Provide your mobile number and click ‘Continue’.

You will receive a 6-digit OTP (One-Time Password) on your mobile number. Enter this OTP and click ‘Continue’.

Select the ‘Income Tax’ option from the checkboxes and click ‘Proceed’.

Choose the Assessment Year as 2024-25 and the ‘Type of Payment’ as ‘Advance Tax (100)’. Click ‘Continue’.

Fill in all the required tax details.

Select your preferred payment method and bank, and click ‘Continue’.

Review the challan details and click ‘Pay Now’. If needed, you can edit the details before proceeding.

After the payment is completed, you will receive an acknowledgement on the next screen. Save a copy of the tax receipt, which contains the BSR code and challan serial number, for future reference. These details will be required when filing your tax return.