Advance Tax Deadline: Today, March 15, marks the final day to submit the last installment of advance tax for the financial year 2025-26. If your total tax liability, after accounting for TDS, surpasses ₹10,000, you need to settle your tax dues by today to prevent incurring interest charges later.
Who is required to pay advance tax?
Many people believe that advance tax is solely for businesses or professionals, but that’s not entirely accurate. If you earn income from sources other than your salary, such as rental income, capital gains, or bank interest, where TDS has not been deducted or has been deducted at a lower rate, you might also need to pay advance tax. This installment due on March 15th is particularly important for these individuals, as it constitutes a significant part of their total tax liability for the year.
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Individuals who choose the ‘Presumptive Taxation Scheme’ are not required to pay taxes in installments throughout the year; instead, they can pay their entire advance tax in one payment by March 15.
Special exemptions for senior citizens
If you are a senior citizen without any business or professional income, you are fully exempt from paying advance tax. Even if you receive income from bank fixed deposits (FDs) or dividends, you are not obligated to make mid-year tax payments. You can simply pay your tax when you file your income tax return.
Will payments be accepted on Sunday as well?
Since today is Sunday, taxpayers may be curious about how to proceed with their payments. The Income Tax Portal is available 24/7. You can conveniently make online payments from home using net banking, credit/debit cards, or UPI, even on a Sunday. If online payment isn’t an option for you, you can generate a challan from the portal. This challan can be submitted at a bank branch, and it remains valid for 15 days from the date of generation or until March 31st, whichever comes first.
Remember these things before making the payment
To ensure your tax calculation is accurate, please check these points:
AIS and Form 26AS: Be sure to check your Annual Information Statement and Form 26AS to ensure you don’t miss out on any income.
Income Reconciliation: Calculate rental income, freelancing income and bank interest accurately.
Correct Challan: While making payment on the Income Tax Portal, carefully select the ‘Assessment Year’ and ‘Payment Type’.
What happens if the deadline is missed?
If you fail to pay advance tax today, there’s no direct government penalty. However, you may have to pay interest under sections 234B and 234C of the Income Tax Act, which will further increase your total tax liability.