Advance Income Tax is the tax paid by a taxpayer in advance. This means, instead of paying all the tax at the end of the financial year, advance income tax is paid by eligible taxpayers as they earn. In every financial year, taxpayers can pay advance tax in four installments in the months of June, September, March, and December.
All the advance taxpayers who have already paid the three installments of tax for the current financial year, and are left with only the fourth instalment, must pay it as soon as possible. The last date to pay the fourth and last installment of advance tax for the ongoing financial year is 15 March 2024. Failing to pay the advance tax for March 2024, may cost a penal interest to the taxpayers.
When is the Last Date to Pay Advance Income Tax for March 2024?
The deadline to pay the last installment of advance income tax for the current financial year is 15 March 2024.
Is There a Penalty for Missing Payment of Advance Income Tax?
Taxpayers who fail to pay any of the four installments of advance income tax will be penalised under section 234C, and have to pay penal interest as per their income.
Who is Eligible for Advance Income Tax?
All those individuals who have other sources of income apart from their salary are eligible for advance income tax. For example, income through lotteries, fixed deposits, rent, capitals gains from shares etc is entitled for advance income tax.
Individuals who owe more than Rs 10,000 tax after deducting TDS are required to pay advance income tax before the deadline on 15 March to avoid penal interest.
The deadline for filing an updated Income Tax Return (ITR) is 31 March 2024.
Who is Exempted From Advance Income Tax?
Following individuals are exempted from advance income tax payment.
Senior citizens who are more than 60 years old, and do not have any income from business or any other enterprise.
Salaried individuals whose TDS gets deducted from their salary.
Taxpayers who have opted presumptive taxation scheme under section 44AD or 44ADA. These individuals can either pay the income tax in full payment on or before 15 March or 31 March 2024.
How To Pay Advance Income Tax?
In every financial year, eligible taxpayers have to pay the advance income tax in four installments in the months of June, September, March, and December. The advance income tax can be paid online, either on the official website of Income Tax department (incometaxindia.gov.in) or the National Securities Depository.
Steps To Pay Online Advance Income Tax
Go to the official website of Income Tax department.
On the appeared homepage, navigate to the 'Quick Links' section, and click on 'e-pay Tax.'
Enter all the required details like PAN number, mobile number, and more.
Hit the 'continue' option.
You will get an OTP on the registered mobile number.
Enter the OTP and click on 'continue' option.
In the appeared page, select 'Income Tax' and click on 'proceed' option.
Now select the assessment year and mode of payment as per your requirement.
Enter all the income tax details.
Verify the information and click on the 'Pay Now' option.
Verify the captcha and click on the 'Submit to the bank' option.
You will get a payment confirmation SMS and email, along with important details like BSR code, challan serial number, date of challan etc.
Download, save, and print a copy for future reference.
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