Advance tax payment last date is on Sunday Dec 15: What should you do?

Taxpayers with an income tax liability exceeding Rs 10,000 are required to pay advance tax to avoid penal interest and penalties. This payment must be made according to a specified quarterly schedule. For the financial year 2024-25, the deadline for the third installment of advance tax, covering the third quarter, is December 15, 2024. However, since December 15, 2024, falls on a Sunday, many taxpayers might wonder if they can make the payment on December 16 instead.

 

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.”

 

Advance tax payment schedule for FY 2024-25

 

On or before 15th June 2024: Pay 15 per cent of the advance tax liability.

 

By 15th September 2024: Pay 45 per cent of the advance tax liability, after deducting any amount already paid.

 

By 15th December 2024: Pay 75 per cent of the advance tax liability, after accounting for previous payments.

 

By 15th March 2025: Pay 100 per cent of the advance tax liability, adjusted for any payments already made.

 

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.