Advance Tax Payment Deadline: What You Need to Do Before December 15

Advance Tax Payment Deadline: Taxpayers with an income tax liability exceeding Rs 10,000 are required to pay advance tax, and failure to do so could result in penal interest and penalties. To make these payments, taxpayers must adhere to a quarterly schedule. The deadline for paying the third instalment of advance tax for the third quarter is December 15, 2024, for the FY 2024-25.

However, since December 15, 2024, falls on a Sunday, which is a public holiday, taxpayers may wonder if they can make the payment on the next working day, December 16, 2024. The answer is yes.

As per a circular issued in 1994, which remains in effect, if the due date for advance tax falls on a public holiday, the payment can be made on the next working day without incurring any penal interest or penalties.

As per Chartered Accountant (Dr.) Suresh Surana, taxpayers can pay the third installment of advance tax for FY 2024-25 on December 16, 2024 (Monday), without incurring any penalty or interest. According to Economictimes, this is in line with a circular issued in January 1994, which states that if the advance tax due date falls on a public holiday (like December 15, 2024, which is a Sunday), the next working day becomes the official deadline for payment.

What should you do?

“Taxpayers should note that while the due date for the third installment of advance tax for FY 2024-25 is December 15, 2024, which falls on a Sunday, payments can be made by December 16, 2024. However, they must ensure that the due date will be December 15 for all subsequent periods, provided it does not fall on a weekend or public holiday,” said Amit Bansal, Partner, Singhania & Co.

What does the income tax department say?

“In cases where the last date for making payment of such instalments (i.e., 15th September 15th December and 15th March) happens to be a holiday and the assessee pays the due amount of advance tax on the next working day….It is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged.”

How to pay advance tax?

Go to the Income Tax Department e-filing portal.
Click on the ‘e-Pay Tax’ option in the ‘quick links’ section.
Enter your PAN and mobile number, then verify them by entering the OTP sent to your phone.
Select the appropriate tax category under ‘Income Tax’.
Select payment type and fill in the tax amounts you need to pay.
Select your preferred method (Net Banking, Debit/Credit Card, UPI, etc.).
Double-check the challan details and click ‘pay now’ to complete the transaction.
Download and save the tax receipt for your records.