Tax season is here, and it’s crunch time for salaried employees, freelancers, and businesses! A significant deadline—the third installment of advance tax for the fiscal year 2024–2025—is December 15, 2024.. Staying compliant with income tax regulations means meeting this deadline, but what if it falls on a Sunday?
Don’t panic! Everything you need to know to keep on course is as follows:
What Is Advance Tax?
Income tax is paid in installments throughout the year under the advance tax system, also referred to as the “pay as you earn” tax, as opposed to at the conclusion of the fiscal year.. It’s mandatory for anyone—individuals or businesses—with an annual tax liability of ₹10,000 or more.
Here’s how the payment schedule works:
- 15% of the whole tax obligation by June 15th
- By September 15: 45% of the tax liability (including prior payments)
- By December 15: 75% of the tax liability
- By March 15: 100% of the tax liability
What Happens If You Miss December 15?
Relax! If December 15 happens to fall on a Sunday, there’s an automatic extension. Taxpayers can make their payments by December 16, 2024, without any penalties or interest.
A long-standing regulation that the Income Tax Department explained in a 1994 circular supports this extension:
“”Under sections 234B or 234C of the Income Tax Act, the payment may be made on the following working day without incurring interest if the deadline for paying any advance tax installment falls on a day when the receiving bank is closed.”
So, if you’re worried about missing the Sunday deadline, you’ve got a day’s grace to settle your dues hassle-free.
How to Pay Your Advance Tax
Paying your advance tax is simpler than you might think! Just follow these steps:
- Visit the Income Tax Department portal and click on ‘e-Pay Tax’ under Quick Links.
- Verify your details, input your PAN, and provide your registered cellphone number.
- Input the OTP received on your phone.
- Once the tax category has been chosen, enter the amount due under “Advance Tax (100)”..
- Select your preferred payment method, review the details, and confirm the payment.
Done! You’re all set.
Don’t Delay, Act Today!
This year’s automatic extension gives taxpayers some much-needed breathing room. But why wait until the last minute? Ensure your payment is completed by December 16, 2024, and stay stress-free. Remember, advance tax isn’t just about compliance—it’s about avoiding penalties and staying financially disciplined.
