September 15, 2025

Advance tax is like a 'pay as you earn' system where you pay your tax in parts during the year. If your total tax bill is more than Rs 10,000 in a financial year, you must pay advance tax in four instalments. Missing the deadline means paying penal interest. Who Must Pay? If your tax is above Rs 10,000, advance tax is for you! But if you’re a salaried person whose employer deducts correct TDS and have no extra income, you’re safe. "The word correct is important here since many salaried individuals end up paying huge interest under Section 234C and 234B," experts say. This happens when you have other incomes like capital gains. Senior citizens (60+) don’t have to pay advance tax unless they earn from business or profession. Important Dates for FY 2025-26 (AY 2026-27): - June 15, 2025: Pay 15% of your total tax. - September 15, 2025: Pay 45% minus what you already paid. - December 15, 2025: Pay 75% minus what you already paid. - March 15, 2026: Pay 100% minus what you already paid. The hot date coming up is September 15, 2025 — the deadline for the second instalment! Penalty for Delay Missing deadlines? Watch out! You pay penal interest under Section 234B and 234C at 1% per month or part of a month. - Section 234B: For delay or less advance tax paid. - Section 234C: For paying less than required instalments on time. When Does Section 234C Interest Happen? - Pay less than 12% by June 15. - Pay less than 36% by September 15. - Pay less than 75% by December 15. - Pay less than 100% by March 15. Good News! Exceptions exist for underestimating some incomes like capital gains, lottery wins, business income starting first time, and dividends. But remember, you must pay full tax for these incomes in next installments or before year-end. So, why wait and risk extra charges? Watch the dates, pay on time, and keep your pockets happy!

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Tags: Advance tax, Income tax, Penal interest, Tax deadlines, Section 234b, Section 234c,