Missed December 15 advance tax deadline? Here’s what will happen

Income tax paid in installments throughout the year rather than at the end of the fiscal year is known as advance tax or “pay as you earn” tax. It applies to people and companies that owe at least ₹10,000 in taxes annually.

There are four payments in the payment schedule:

*15% of the tax obligation by June 15th

*45% of the tax obligation by September 15 (adjusted for previous payments)

*75% of the tax obligation by December 15

*100% of the tax obligation by March 15

The good news is that taxpayers automatically receive an extension if December 15 occurs on a Sunday. There are no penalties or interest if payments are made on December 16, 2024, the next business day, Business Today reported.

This relief is based on a long-standing rule that the Income Tax Department clarified in a 1994 circular. It said,”If the receiving bank is closed on the day that the last day for payment of any installment of advance tax is due, the payment may be made on the following working day without incurring interest under sections 234B or 234C of the Income Tax Act.”

Here is a brief how-to for completing the payment:

Choose “e-Pay Tax” from the Quick Links section of the Income Tax Department’s website.

Provide your registered mobile number, confirm your information, and enter your PAN.

Enter the obtained OTP.

Enter the amount owed under “Advance Tax (100)” after selecting the tax category.

Choose your payment option, check the information, and make sure.

Taxpayers may relax now that the extension has been granted. To prevent problems, just make sure the payment is paid before December 16.

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