The deadline for the third installment of advance tax for the financial year 2024-25 is on December 15, 2024. However, since this date falls on a Sunday, you can pay the advance tax on the next working day, which is December 16, 2024, without incurring any penalty or interest.
The flexibility is based on a circular issued in 1994, which has still not been superseded, which states that “ if the due date to deposit advance tax falls on a public holiday, then the next working day will be the deadline.”
Taxpayers with an income tax liability of more than Rs 10,000 need to pay advance tax otherwise they will have to pay penal interest and penalties. To pay this advance tax you need to follow a specified quarterly schedule. So, the deadline to pay the third instalment of advance tax in the third quarter is December 15, 2024, for FY 2024-25.
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The circular 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.
Failure to pay the advance tax by December 16, 2024, may make you liable to pay interest under section 234B and penalty under section 234A of the Income Tax Act, 1961. It is vital to accurately calculate your advance tax liability based on your estimated income for the financial year. You can use the Income Tax Department’s official website or consult with a tax professional to calculate your advance tax liability.
You can pay your advance tax online through the Income Tax Department’s e-filing portal or through authorized banks.
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