Advance Tax Payment Last Date FY 2024-25 (AY 2025-26) & FY 2025-26: Guide, Due Dates, Calculation & Online Payment
- Rajesh Kumar Kar
- Jun 20
- 17 min read
Understanding the advance tax payment last date is very important for every taxpayer. Advance Tax means paying your income tax in parts during the financial year, instead of all at once when the year ends. This system helps the government with a steady income and makes it easier for taxpayers to manage their money. This comprehensive advance tax guide will explain the due dates, who needs to pay, how to calculate it, the online payment process, and any penalties for missing deadlines for both the current Financial Year (FY) 2024-25 (Assessment Year (AY) 2025-26) and the upcoming FY 2025-26. At TaxBuddy, we make tax compliance, including your overall income tax filing, simpler for everyone. The Income Tax Department of India provides the framework for these payments.
This article will cover:
What Advance Tax is.
Who is liable to pay Advance Tax.
Due Dates for FY 2024-25 and FY 2025-26.
How to calculate your Advance Tax.
Online payment process.
Penalties for non-payment or delays.
Frequently Asked Questions.
Table of Contents
What is Advance Tax? Understanding the "Pay-As-You-Earn" System
Many people ask, what is advance tax? Advance tax is basically paying your income tax throughout the Financial Year as you earn, rather than as a single large sum after the year ends. Think of it like paying small, regular installments for a big purchase instead of one huge payment. The purpose of advance tax is twofold: it gives the government a consistent flow of Tax Revenue to fund its activities all year round, and it lessens the Taxpayer's burden of a heavy, one-time payment. The Income Tax Act 1961 states that if your total Tax Liability in a financial year is ₹10,000 or more, you generally need to pay advance tax. This method, often called pay as you earn tax, makes tax payments more manageable. It's a good idea to estimate your tax liability early to see if you fall under this rule.
Who is Liable to Pay Advance Tax in India?
Determining who should pay advance tax is a common query for many taxpayers. According to Section 208 of the Income Tax Act, 1961, if your total tax liability for the Financial Year, after subtracting any Tax Deducted at Source (TDS) or Tax Collected at Source (TCS), is ₹10,000 or more, you must pay advance tax. This applies to various categories of Taxpayers.
Here’s a breakdown of advance tax applicability:
Individuals (Salaried Employees with Other Income, Freelancers, Professionals): Salaried Employees whose employers already deduct TDS might still need to pay advance tax if they have significant income from other sources like rent, interest, capital gains, or freelancing work. Advance tax for freelancers and Professionals like doctors, lawyers, and consultants is mandatory if their net tax liability hits the ₹10,000 mark.
Business Owners: Whether you are a Sole Proprietor, run a Partnership Firm, an LLP (Limited Liability Partnership), or a Company, advance tax for business is required if the tax payable is ₹10,000 or more. Businesses often have fluctuating incomes, so regular estimation is key. Some might opt for the presumptive taxation scheme, which has different rules.
Hindu Undivided Families (HUFs): HUFs are also covered under this rule and need to pay advance tax if their liability meets the threshold.
Essentially, if you anticipate your tax bill for the year to be ₹10,000 or more after considering TDS/TCS, you should be prepared to pay advance tax.
Specific Cases for Advance Tax Liability
Certain types of income often trigger the need for advance tax on capital gains, dividends, and more. If you earn significant Dividend Income, this can increase your total income and, therefore, your tax liability, pushing it above the ₹10,000 threshold for advance tax. Similarly, substantial Interest Income from bank deposits, bonds, or loans given can lead to advance tax obligations. For those receiving advance tax for rental income, this income is added to your total earnings and taxed according to your slab rate, potentially making advance tax necessary. Even winnings from a Lottery or similar sources are part of your income and can make you liable.
Handling unpredictable income, like Capital Gains, can seem tricky. The tax department understands that you can't always foresee these gains. The general guidance is to estimate these incomes as accurately as possible. If you realize such gains after an advance tax installment due date has passed, you should pay the tax due on this additional income in the subsequent remaining installments. If no installments are left, you should pay it by March 31st of the financial year. This approach helps in minimizing interest charges.
Who is Exempt from Paying Advance Tax?
There are specific exemptions from the advance tax exemption rules. The most significant no advance tax provision applies to Resident Senior Citizens. A Senior Citizen, who is 60 years of age or older during the financial year, does not need to pay advance tax, provided they do not have any income from Business or Profession. This is a key relief mentioned under Section 207(2) (or the relevant current provision) of the Income Tax Act.
Additionally, any individual or entity whose total Tax Liability for the year, after accounting for TDS, is less than ₹10,000, is not required to pay advance tax.
In summary, the exemptions are:
Resident Senior Citizens (60 years or older) without any Business Income or Professional Income.
Taxpayers whose net tax liability (after TDS) is below ₹10,000.
Advance Tax Payment Last Dates for FY 2024-25 (AY 2025-26)
Knowing the advance tax due dates FY 2024-25 is essential for timely compliance. For the Financial Year 2024-25, which corresponds to Assessment Year 2025-26, taxpayers (both individuals and corporate) need to pay their advance tax in Installments. The advance tax payment schedule 2024-25 is laid out by Section 211 of the Income Tax Act. The last date for advance tax June 2024 is the first crucial deadline. Subsequent deadlines fall in September 2024, December 2024, and March 2025.
Here are the due dates and percentages:
Due Date | Percentage of Advance Tax Payable |
On or before 15th June 2024 | At least 15% of total advance tax |
On or before 15th Sept 2024 | At least 45% of total advance tax (less tax already paid) |
On or before 15th Dec 2024 | At least 75% of total advance tax (less tax already paid) |
On or before 15th March 2025 | 100% of total advance tax (less tax already paid) |
[Table based on common advance tax schedules, e.g., 7, 16]
Special Due Date for Taxpayers Under Presumptive Scheme (FY 2024-25)
The advance tax presumptive scheme 44AD due date and the 44ADA advance tax last date FY 2024-25 offer a simpler payment method for eligible taxpayers. If you have opted for the Presumptive Taxation Scheme under Section 44AD (for businesses) or Section 44ADA (for professionals) of the Income Tax Act, you don't need to follow the quarterly installment schedule. Instead, these taxpayers are required to pay their entire advance tax liability in a single installment. This single payment must be made on or before 15th March 2025, covering 100% of the advance tax due for the Financial Year 2024-25. Some sources also mention an option to pay by March 31st, though it's best to aim for March 15th to ensure compliance.
Advance Tax Payment Last Dates for FY 2025-26 (AY 2026-27)
Looking ahead, the advance tax due dates FY 2025-26 will guide taxpayers for the upcoming Assessment Year 2026-27. While these dates are based on current provisions of Section 211, it’s always wise for taxpayers to verify with official communications from the Income Tax Department closer to the Financial Year 2025-26. The advance tax payment schedule 2025-26 generally mirrors the previous years. Key Installments include the last date for advance tax June 2025, followed by deadlines in September 2025, December 2025, and March 2026.
Here’s a provisional look at the due dates and percentages: Based on current provisions of Section 211. Taxpayers should verify with official Income Tax Department communications closer to the dates.
Due Date | Percentage of Advance Tax Payable (Provisional) |
On or before 15th June 2025 | At least 15% of total advance tax |
On or before 15th Sept 2025 | At least 45% of total advance tax (less tax already paid) |
On or before 15th Dec 2025 | At least 75% of total advance tax (less tax already paid) |
On or before 15th March 2026 | 100% of total advance tax (less tax already paid) |
Special Due Date for Taxpayers Under Presumptive Scheme (FY 2025-26)
For those using the Presumptive Taxation Scheme, the advance tax presumptive scheme 44AD due date FY 2025-26 and the 44ADA advance tax last date FY 2025-26 follow a similar pattern. Taxpayers who choose the benefits of Section 44AD or Section 44ADA of the Income Tax Act for the Financial Year 2025-26 will need to pay their entire advance tax amount in one go. This single installment, covering 100% of their tax liability, should be paid on or before 15th March 2026. Always refer to official guidelines from the Income Tax Department for confirmation as the dates approach.
How to Calculate Your Advance Tax Liability? Step-by-Step
To calculate advance tax, you need a clear understanding of your income and applicable deductions. This step-by-step guide explains how to estimate advance tax.
Estimate Total Annual Income: First, project your Gross Total Income from all sources for the financial year. This includes Salary, income from Business/Profession, Capital Gains, earnings from House Property, and Income from Other Sources (like interest, dividends).
Claim Applicable Deductions: Next, subtract eligible deductions under Chapter VI-A of the Income Tax Act. Common examples are deductions under Section 80C (for investments like LIC, PPF, ELSS), Section 80D (for health insurance premiums), etc.
Arrive at Net Taxable Income: After deductions, the figure you get is your Net Taxable Income.
Calculate Tax Payable: Apply the latest income tax slab rates to your Net Taxable Income. Remember to choose between the New Tax Regime and the Old Tax Regime, as the slab rates and available deductions differ. Add any applicable surcharge and health and education cess (typically 4%) to the calculated tax.
Deduct TDS/TCS: Subtract the Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) that has already been deducted or collected during the year. You can find these details in your Form 26AS or your Annual Information Statement (AIS). It's a good idea to access your Form 26AS via the income tax portal for accurate figures.
Determine Advance Tax Due: If the remaining tax payable after deducting TDS/TCS is ₹10,000 or more, then advance tax is due. This is the total amount you need to pay in installments.
For an advance tax calculation example using the advance tax new regime or advance tax old regime, ensure you use the correct tax slabs for the relevant Financial Year. Always consult your Form 26AS/AIS from the income tax portal for precise TDS figures. TaxBuddy offers calculators and advisory services to help simplify this.
How to Pay Advance Tax Online?
You can conveniently pay advance tax online using Challan 280 (also known as ITNS 280) through the Income Tax Department's e-payment facility. Here’s how to pay advance tax challan 280 via the advance tax payment portal:
Visit the Income Tax e-Filing portal: Go to the official website, which is incometax.gov.in.
Navigate to 'e-Pay Tax': Look for the 'e-Pay Tax' option, usually found in the quick links or services section.
Enter PAN and Mobile Number: You'll typically need to enter your PAN (Permanent Account Number) and mobile number. You will receive an OTP (One-Time Password) on your mobile. Enter the OTP to proceed.
Select 'Income Tax' Payment: On the payment page, choose the 'Income Tax' or a similar option for making direct tax payments.
Select Assessment Year (AY): Carefully choose the correct Assessment Year for which you are paying the tax. For example, for Financial Year 2024-25, the AY is 2025-26.
Select Type of Payment (Minor Head): Choose '(100) Advance Tax' as the Type of Payment or Minor Head.
Enter Tax Amount: Input the amount of advance tax you wish to pay for that installment.
Choose Payment Mode: Select your preferred payment method, which could be Net Banking or Debit Card/Payment Gateway, depending on the options available.
Select Bank and Complete Payment: Choose your bank from the list provided and complete the transaction through your bank's interface.
Download Challan Receipt: After successful payment, a challan receipt will be generated. This receipt contains important details like the BSR Code of the bank branch, the Challan Serial Number, and the date of payment. Download and save this receipt securely, as it's your proof of payment.
These steps are based on the current interface of the income tax portal advance tax payment system (as of May 2025). Always refer to the official Income Tax e-Pay Tax portal for the most current instructions.
What Happens If You Miss the Advance Tax Due Date?
Missing the missed advance tax due date or underpaying your installments can lead to Interest and, in some cases, Penalties. The penalty for late payment of advance tax primarily comes in the form of interest levied under two sections of the Income Tax Act: Section 234C and Section 234B.
Section 234C: Interest for deferment/shortfall of advance tax installments.Section 234C interest applies if you pay less than the required percentage by the due date of each installment.
If, by 15th June, you pay less than 15% of the total advance tax due, interest at 1% per month is charged for 3 months on the shortfall amount.
If, by 15th September, the cumulative tax paid is less than 45% of the total advance tax, interest at 1% per month is charged for 3 months on the shortfall from 45%.
If, by 15th December, the cumulative tax paid is less than 75% of the total advance tax, interest at 1% per month is charged for 3 months on the shortfall from 75%.
If, by 15th March, the cumulative tax paid is less than 100% of the total advance tax, interest at 1% is charged for 1 month on the shortfall. Note: There are some relaxations if the shortfall is due to underestimation of income like capital gains or winnings from lotteries, provided tax is paid in subsequent installments or by March 31st. Also, some interpretations suggest no interest if at least 12% is paid by June 15th and 36% by September 15th, but it is safer to adhere to the 15%/45%/75%/100% rule.
Section 234B: Interest for non-payment or shortfall of advance tax if less than 90% of assessed tax is paid by 31st March.Section 234B interest is levied if the total advance tax paid by the end of the financial year (i.e., by 31st March) is less than 90% of your 'Assessed Tax' (total tax liability minus TDS/TCS). The interest is calculated at 1% per month (or part of a month) on the shortfall amount (Assessed Tax minus advance tax paid). This interest is charged from the 1st of April of the Assessment Year until the tax is fully paid or until the assessment is completed. Any tax paid on or before 31st March is treated as advance tax for this calculation.
Here's a simple comparison:
Feature | Section 234B | Section 234C |
Trigger | <90% of assessed tax paid by 31st March | Shortfall/deferment in individual installments |
Interest Rate | 1% per month (or part) on shortfall/unpaid Assessed Tax | 1% per month (or part) on installment shortfall |
Calculation From | 1st April of Assessment Year | From respective due date of installment for a specified period |
Understanding these sections can help avoid significant interest liability. If you're facing such issues, managing tax notices can become complex, and consulting a tax advisor from TaxBuddy is recommended.
Important Note on ITR Filing Deadline Extension for FY 2024-25 (AY 2025-26)
There's an important update regarding the ITR filing deadline extended 2025. The CBDT, through a press release dated May 27, 2025, announced an extension for filing Income Tax Returns (ITR) for non-audit cases for the Financial Year 2024-25 (Assessment Year 2025-26). The due date has been moved from July 31, 2025, to September 15, 2025.
However, it's crucial to understand the difference between advance tax vs ITR due date. This extension applies only to the ITR Filing deadline. It does not change the due dates for Advance Tax Installments. The impact of ITR extension on advance tax is nil for payment deadlines. Interest under Section 234B and Section 234C will still apply if advance tax payments are not made by their respective deadlines (e.g., June 15, Sept 15, Dec 15, March 15 for FY 2024-25). Timely advance tax payment remains crucial. You can Read more about the ITR filing extension on our blog or refer to the official CBDT announcement (if a specific link for the circular is available like CBDT Circular No 06/2025 dated 27th May, 2025).
Using Form 26AS and AIS for Accurate Advance Tax Estimation
Using Form 26AS for advance tax estimation is a smart practice. Form 26AS is your annual tax statement. It consolidates details of Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax paid by you, self-assessment tax payments, and even details of high-value financial transactions. The AIS and advance tax system work together; the Annual Information Statement (AIS) provides an even more comprehensive view of your financial transactions reported by various entities. It includes information like interest income, dividend income, securities transactions, mutual fund transactions, and foreign remittances.
To check TDS for advance tax and other income details:
Regularly review your Form 26AS and your Annual Information Statement (AIS) throughout the year.
Cross-verify the TDS/TCS details with your own records (like salary slips, bank statements).
Use the income details in AIS (like interest, dividends) to get a more accurate estimate of your total income. This helps in calculating your advance tax liability more precisely and avoids discrepancies when filing your income tax return.
Tips for Managing Advance Tax Payments Effectively
Effective advance tax planning tips can help you manage advance tax payments smoothly and avoid advance tax penalty situations.
Maintain Proper Records: Keep organized records of all your income sources and expenses throughout the Financial Year. This makes estimation much easier.
Estimate and Review Quarterly: At the beginning of the FY, make a careful Income Estimation. Revisit this estimate every quarter, especially before an advance tax installment is due. If your income changes significantly, your advance tax liability will also change.
Pay on Time: Always aim to pay your installments on or before the specified due dates. This is the simplest way to avoid interest charges.
Adjust Subsequent Installments: If your income increases or decreases unexpectedly during the year, recalculate your total advance tax liability and adjust the amount you pay in the remaining installments.
Keep Challan Receipts Safe: Securely store all advance tax payment challan receipts. These are important proofs of payment and are needed when filing your income tax return.
Consult a Tax Advisor: If you're unsure about calculations, applicability, or any aspect of advance tax, it's always best to consult with a TaxBuddy expert. Proactive Tax Planning can save you from unnecessary interest and provide peace of mind.
Conclusion: Stay Compliant, Avoid Penalties
Understanding the importance of advance tax is key to good financial health for taxpayers. Meeting your advance tax obligations and Due Dates, such as the upcoming June 15, 2024 deadline for the first installment of FY 2024-25, is crucial. Non-compliance can lead to avoidable interest payments, effectively increasing your tax outgo. Advance tax compliance not only helps you avoid tax penalties but also ensures you contribute to the nation's resources in a timely manner. TaxBuddy offers resources and expert assistance to navigate these requirements smoothly. If you need help with your advance tax, don't hesitate to Contact TaxBuddy for assistance.
FAQ
Q1. What is the minimum tax liability for advance tax to be applicable?
Advance tax is applicable if your estimated tax liability for a financial year is ₹10,000 or more after deducting TDS/TCS.
Q2. Can I pay advance tax after the due date? What are the consequences?
Yes, you can pay advance tax after the due date. However, interest under Section 234C will be levied for the delay in paying the installment. If the total advance tax paid by March 31st is less than 90% of the assessed tax, interest under Section 234B could also apply from April 1st of the Assessment Year. It's better to pay any missed installments as soon as possible, and definitely before March 31st, to minimize interest.
Q3. Do salaried individuals need to pay advance tax if TDS is already deducted?
Generally, if TDS deducted by the employer covers the full tax liability on salary income, and there's no other significant income, advance tax may not be needed. However, if a salaried individual has other income like capital gains, rental income, substantial interest, etc., which pushes their net tax liability to ₹10,000 or more after TDS, then they must pay advance tax on this additional income.
Q4. How is advance tax calculated if I have income from capital gains which are unpredictable?
You should estimate your income, including capital gains, as accurately as possible. If capital gains occur unexpectedly after an installment due date has passed, you should pay the tax attributable to these gains in the next remaining installment(s). If all installment dates have passed, pay the tax by March 31st of the financial year. This helps reduce interest under Section 234C for that portion of income.
Q5. What happens if I pay excess advance tax?
If you pay excess advance tax, you can claim a refund when you file your Income Tax Return (ITR) for that year. The Income Tax Department may also pay you interest on the refund amount if the excess paid is more than 10% of your total tax liability, as per prevailing rules.
Q6. Which challan is used for advance tax payment?
Challan 280 (also known as ITNS 280) is used for making advance tax payments.
Q7. Are NRIs liable to pay advance tax in India?
Yes, Non-Resident Indians (NRIs) are liable to pay advance tax in India on income that is earned or accrues in India, if their tax liability on such income is ₹10,000 or more after TDS. For more detailed information, you can refer to NRI taxation rules.
Q8. Do I need to pay advance tax if I have a business loss?
If you estimate an overall net taxable income for the year (after setting off any eligible business losses as per income tax rules) that results in a tax liability of ₹10,000 or more, then advance tax is payable. If, after all calculations, you project an overall loss or an income that is below taxable limits (or results in tax less than ₹10,000), then you do not need to pay advance tax.
Q9. How does the presumptive taxation scheme under Sec 44AD/44ADA affect advance tax payments?
Taxpayers opting for the presumptive taxation scheme under Section 44AD (for businesses) or Section 44ADA (for specified professionals) are required to pay their entire advance tax liability in a single installment on or before 15th March of the financial year. They can also pay the amount by March 31st.
Q10. Where can I see my advance tax payments made?
You can see your advance tax payments in your Form 26AS (Annual Tax Statement) and also in the Annual Information Statement (AIS). Additionally, after logging into the income tax portal, you can usually find a 'Payment History' or similar section that lists taxes you've paid.
Q11. What if the last day for payment of advance tax is a bank holiday?
As per general practice and some CBDT clarifications, if the due date for an advance tax installment falls on a bank holiday, the payment can typically be made on the immediately next working day without attracting interest. However, it's always prudent to pay a day or two earlier to avoid any last-minute issues.
Q12. Can I revise my advance tax payment if my income estimate changes during the year?
Yes, absolutely. You should reassess your income and tax liability before each installment. If your estimated income increases, you should pay a higher amount in the subsequent installment(s). If it decreases, you can pay a lower amount. The goal is to ensure the correct total advance tax is paid by the end of the year.
Q13. Is interest paid on advance tax deductible as an expense?
No, interest paid for late payment or shortfall of advance tax (under Section 234B or Section 234C) is not allowed as a deductible business expense when computing your taxable income.
Q14. Does choosing the new tax regime affect my advance tax liability calculation?
Yes. The choice between the new tax regime and the old tax regime significantly impacts your tax calculation. The applicable deductions and tax slab rates are different under each regime. Therefore, your estimated total tax liability, which is the basis for your advance tax, will change depending on the regime you intend to opt for when filing your ITR. You must calculate your advance tax based on the regime you plan to follow.
Q15. What should I do if my advance tax payment is not reflected in Form 26AS?
First, wait for about 3-4 working days after making the payment, as it can take some time for the details to be updated in Form 26AS or AIS. If it still doesn't appear, carefully check the challan receipt for any errors in your PAN, the Assessment Year, or the amount. If all details on the challan are correct, contact your bank to ensure the payment was correctly processed and forwarded. If the issue persists, you may need to raise a grievance with the Income Tax Department through their portal.
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