The Income Tax Department has issued a crucial reminder for taxpayers regarding the final instalment of advance tax for the financial year 2024-25. As per the official directive, taxpayers must clear their advance tax dues by March 15, 2025, to ensure compliance with Indian tax laws. Timely payment of advance tax not only prevents interest penalties but also contributes to the government's efforts towards economic growth, supporting the ‘Viksit Bharat Movement’ aimed at making India self-reliant and prosperous. Advance tax is a ‘Pay as you Earn Scheme’ designed to ease the tax burden by enabling individuals and businesses to pay their taxes in instalments throughout the financial year rather than paying a lump sum at the end. This structured approach helps taxpayers manage their finances better while ensuring timely contribution to the nation's development.
 

Individuals whose estimated tax liability for the financial year exceeds Rs. 10,000 are required to pay advance tax. This applies to salaried individuals, freelancers, and businesses after considering deductions from TDS (Tax Deducted at Source) or TCS (Tax Collected at Source). Notably, senior citizens aged 60 years or more are also required to pay advance tax if they have income derived from business or professional sources. Furthermore, taxpayers following the presumptive taxation scheme under Section 44AD are required to clear their entire advance tax amount by March 15, 2025.
 

According to tax expert CA (Dr.) Suresh Surana, individuals earning through various sources such as rent, dividends, or capital gains must also adhere to the advance tax rules if their total tax liability exceeds Rs. 10,000 for the year. For example, rental income is taxed under "Income from House Property," where a standard deduction of 30% is allowed. Dividends and interest are taxed as per the individual's applicable slab rates under "Income from Other Sources." Additionally, profits earned from selling properties, stocks, or mutual funds may be subject to capital gains tax. Taxpayers should note that short-term and long-term capital gains are treated differently. While short-term gains are taxed as regular income, long-term capital gains from equity shares and equity-oriented mutual funds are exempt from tax up to Rs. 1,25,000. For taxpayers preparing to pay their advance tax, Challan No. ITNS 280 must be filled out accurately. This form requires key details such as PAN information, assessment year, and preferred mode of payment. Ensuring that these details are correct can prevent potential errors or delays in the payment process.
 

Advance tax is structured into four instalments, strategically planned throughout the financial year. The first instalment requires 15% of the total tax liability to be paid by June 15. The second instalment, which requires 45% of the total liability, is due by September 15. By December 15, taxpayers must have cleared 75% of their total tax obligation, and the final 100% payment must be made by March 15, 2025. Taxpayers who miss these deadlines risk facing interest penalties under Sections 234B and 234C of the Income Tax Act. To avoid such penalties, taxpayers are strongly advised to calculate their estimated income carefully, consider applicable deductions, and make timely payments. Failure to adhere to the advance tax deadlines can lead to financial repercussions, particularly for self-employed individuals, businesses, and those with fluctuating incomes. To streamline this process, the Income Tax Department encourages taxpayers to use the official e-filing portal, which offers secure payment gateways and detailed guidelines for completing advance tax payments efficiently. Timely compliance with advance tax rules ensures smoother financial planning while helping taxpayers avoid unexpected burdens during the final stages of the financial year. As March 15, 2025, approaches, taxpayers are urged to assess their financial position, calculate their obligations accurately, and clear their advance tax dues promptly.