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New Delhi: The deadline to pay the second instalment of advance tax for the financial year 2024-25 is approaching on September 15. Taxpayers who need to make this payment should ensure they do so on time to avoid any penalties.
Who Needs To Pay Advance Tax?
Anyone whose total tax liability exceeds Rs 10,000 after accounting for TDS (Tax Deducted at Source) must pay advance tax. This includes salaried employees, freelancers, and businesses. However, senior citizens over 60 years old who do not have business income are exempt from paying advance tax.
Advance Tax Payment Deadline
Advance tax is paid in four instalments throughout the year:
– 15 per cent by June 15
– 45 per cent by September 15
– 75 per cent by December 15
– 100 per cent by March 15
How To Pay Advance Tax?
You can pay advance tax online or offline:
How To Pay Advance Tax Online?
– Visit the Income Tax India e-filing portal.
– Log in with your credentials.
– Under "e-Pay Tax," select "Advance Tax."
– Enter your details, including PAN and assessment year.
– Complete the payment using net banking, debit card, or UPI.
How To Pay Advance Tax Offline?
– Visit a designated bank branch.
– Fill out Challan 280 for payment.
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Penalties For Late Payment
If you miss the deadline, you may face penalties:
– Under Section 234B: If you do not pay 90 per cent of your total tax liability by the end of the financial year, you'll be charged 1 per cent interest per month.
– Under Section 234C: If you miss paying any advance tax instalments on time, a penalty of 1 per cent per month will be applied.
Why Timely Payment Is Crucial?
Paying your advance tax in instalments helps spread out the financial burden throughout the year and avoids hefty penalties. It also ensures that there are no discrepancies when filing your tax returns.
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