75% tax due by December 15: What happens if you miss Sunday's Advance Tax deadline?

The clock is ticking for taxpayers. December 15, 2024, is the advance tax payment deadline for the financial year 2024-25. Salaried employees, freelancers, and businesses are expected to fulfill their obligations by this date to stay compliant with income tax regulations. But with the deadline landing on a Sunday, many are asking: what happens if it’s missed?

Here’s the complete lowdown.

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What Is Advance Tax?

Advance tax, or "pay as you earn" tax, is income tax paid in installments throughout the year instead of at the end of the fiscal year. It applies to individuals and businesses with an annual tax liability of Rs 10,000 or more.
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The payment schedule is divided into four installments:

• By June 15: 15% of the tax liability
• By September 15: 45% of the tax liability (adjusted for prior payments)
• By December 15: 75% of the tax liability
• By March 15: 100% of the tax liability

What If You Miss Dec. 15?

The good news: if December 15 falls on a Sunday, taxpayers get an automatic extension. Payments can be made the next working day — December 16, 2024 — without penalties or interest.

This relief stems from a longstanding rule clarified by the Income Tax Department:
“If the last day for payment of any installment of advance tax is a day on which the receiving bank is closed, the payment can be made on the next working day without attracting interest under sections 234B or 234C of the Income Tax Act,” the department noted in a 1994 circular.

How To Pay Your Advance Tax

Here’s a quick guide to making the payment:

• Visit the Income Tax Department portal and select ‘e-Pay Tax’ under Quick Links.
• Enter your PAN, verify your details, and provide your registered mobile number.
• Input the OTP received.
• Choose the tax category and enter the payable amount under ‘Advance Tax (100)’.
• Select your payment method, verify the details, and confirm.

With the extension, taxpayers can breathe easier. Just ensure the payment is made by Dec. 16 to avoid issues.