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Advance Tax Deadline March 15, Pay Now to Avoid Penalty and Interest

Sweta Mitra
By Sweta Mitra
3 min read
Published: 06 Mar 2026
December Income Tax Deadlines

Advance Tax Deadline: The financial year 2025-26 in India is nearing its conclusion. This brings an important deadline for taxpayers. If your annual tax liability exceeds Rs 10,000, the date of 15 March will be crucial for you. As per Income Tax regulations, this is the final date to submit the last installment of advance tax for the current financial year. Many taxpayers often overlook this deadline due to a lack of information or procrastination, leading to hefty interest and penalties.

What is advance tax?

Advance tax is a “pay-as-you-earn” system established by the government. Many people think that taxes are only paid at the end of the year when filing returns, but that’s not true. If an individual’s total tax liability (after TDS) surpasses Rs 10,000 annually, they must pay tax in installments based on their estimated income. This system helps taxpayers avoid the stress of a large one-time payment and ensures a steady cash flow to the government treasury.

Which taxpayers have to pay advance tax?

Advance tax applies not only to large businesses but also to salaried individuals who earn income from sources beyond their salary. For instance, if you have a job and also receive house rent, earn good interest from bank deposits, or have made investments in the stock market that yield capital gains, your employer will only deduct TDS on your salary, leaving your other income untaxed. Thus, you will need to calculate your advance tax.

Exemption for senior citizen taxpayers

Nevertheless, income tax regulations offer some relief to senior citizen taxpayers. Their income sources must be pension, rent, or interest. Any taxpayer over 60 who actively runs a business or has professional income is required to pay advance tax on time, just like regular taxpayers.

When and how much payment has to be made?

The Income Tax Department has developed a clear structure for paying advance tax throughout the year, dividing it into four installments to avoid financial pressure on the taxpayer.

By June 5: At least 15% of the total estimated tax has to be deposited.

By September 5: 45% of the total tax (including previous installments) has to be deposited.

By December 15: 75% of the total tax (including previous installments) has to be deposited.

By March 15: 100% of the total tax has to be paid in full.

What happens if the advance tax deadline is missed?

Be aware that if you miss the deadline, you could face interest or a penalty. The Income Tax Department charges interest under sections 234B and 234C. Section 234C imposes a penalty for late installment payments, while Section 234B applies if at least 90% of the total tax due is not paid by March 31st. In both cases, taxpayers are required to pay interest at the rate of 1% per month on the outstanding payment.

How to pay Advance Tax from home?

Taxpayers don’t need to travel anywhere to pay advance tax. To do this, visit the Income Tax Department ‘s e-filing portal and select the “e-Pay Tax” option. Then, select “Challan 100” (Advance Tax) and enter your details. Payment can be made through net banking, debit card, or UPI. Keep the receipt or challan received after payment, as it’s essential to provide this information when filing your income tax return.

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