Advance Tax Payment Deadline On Sunday: How To File On IT Website

The deadline for the third instalment of advance tax payments for the financial year 2024-25 is fast approaching. However, since the date falls on a Sunday, taxpayers can make their payments by the next working day, Monday, December 16, 2024, without incurring any penalties or interest.

The Income Tax Department has clarified that payments made on the next business day are considered timely when the due date falls on a public holiday.

Why does this matter?

Advance tax is a system designed to help individuals and businesses spread their tax liability throughout the year. Missing deadlines can lead to additional interest charges under Section 234B (for late payment) and Section 234C (for short payment).

To avoid these charges, ensure that 75% of your total tax liability for the year is paid by the December deadline. This includes salaried individuals with other sources of income (like interest or capital gains), freelancers, and business owners.

What is Advance Tax?

Advance tax, often called 'pay as you earn' tax, requires taxpayers to estimate and pay their taxes in instalments during the financial year. It applies to anyone with a tax liability exceeding Rs 10,000 in a financial year.

The payment schedule for the financial year 2024-25 is as follows:

• June 15, 2024: 15% of the total tax liability
• September 15, 2024: 45% of the total tax liability (less previous instalments)
• December 15, 2024: 75% of the total tax liability (less previous instalments)
• March 15, 2025: 100% of the total tax liability (less previous instalments)

What happens if you miss the deadline?

If you fail to pay the advance tax instalment by the stipulated deadline, interest under Sections 234B and 234C will be levied. However, since December 15 is a Sunday, payments made on December 16 will be considered timely. This relief has been confirmed by a 1994 Income Tax Department circular, which explicitly states that no penalties will apply if the due date coincides with a holiday and payment is made on the next working day.

How to pay Advance Tax online

• Go to the official Income Tax Department website.
• Click on ‘e-Pay Tax’: Find this option under the ‘Quick Links’ section.
• Provide your PAN and mobile number, then verify with the OTP sent to your phone.
• Choose ‘Advance Tax (100)’ under the income tax category.
• Enter the amount you wish to pay and select a payment method (net banking, UPI, etc.).
• Double-check the challan details and click ‘Pay Now.’
• Keep the transaction receipt for future reference and filing purposes