If you have additional sources of income, such as fixed deposits, despite being a salaried individual, you must pay the final installment of advance tax before March 15th, 2023. Similarly, if you earn income from sources other than your salary, such as rent, capital gains, or FDs, you must pay advance tax on that income.
It is important to note that senior citizens who are 60 years or older and do not have any business income are not required to pay advance tax as reaffirmed in the recent Income Tax Appellate Tribunal (ITAT) Ruling in Vikram Singh vs ITO [2023 TAXSCAN (ITAT) 593] Additionally, advance tax is only payable when the amount to be paid during a financial year exceeds Rs 10,000.
As per Section 211 of the Income Tax Act, 1961 —
Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by—
(a) all the assessees, other than the assessee referred to in clause (b), who are liable to pay the same, in four installments during each financial year and the due date of each installment and the amount of such installment shall be as specified in the Table below:
| Due date of installment | Amount payable |
| On or before the 15th June | Not less than fifteen percent of such advance tax. |
| On or before the 15th September | Not less than forty-five percent of such advance tax, as reduced by the amount, if any, paid in the earlier installment. |
| On or before the 15th December | Not less than seventy-five percent of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier installment or installments. |
| On or before the 15th March | The whole amount of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier installment or installments. |
(b) an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be, to the extent of the whole amount of such advance tax during each financial year on or before the 15th March:
Provided that any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act.
So, If you haven’t fully paid your advance tax liability for 2022-2023 by March 15, you still have the opportunity to do so by March 31, 2023. However, starting from April, an interest of 1% per month will be charged on the outstanding amount until the payment or filing of your Income Tax Return.
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