The Income Tax department has sent out a reminder that the first instalment of advance tax for the financial year 2025–26 is due on June 15.
It wrote on X, “1st instalment of Advance Tax for FY 2025–26 is due by 15th June 2025. Plan Smart. Pay Advance Tax.”
Advance tax simply means paying your income tax in parts throughout the year, instead of waiting till the end. If your total tax due for the year is more than Rs 10,000, then you must pay it in advance in four instalments. This applies whether you’re a salaried employee, freelancer, or a business owner.
By June 15, you need to pay 15% of your total tax. For instance, if your total tax for the year is Rs 1 lakh, you should pay Rs 15,000 by this date.
Missing this deadline could result in financial penalties, so it’s important to verify your tax obligations immediately to avoid unwanted interest charges by year-end.
As per Section 234C of the Income Tax Act, the government charges 1% interest per month on the amount that should’ve been paid.
Over the year, this can add up to 12% extra, an unnecessary expense that you can easily avoid. Therefore, adhering to advance tax deadlines is essential to avoid such charges and to maintain financial stability. Additionally, this interest is calculated on a monthly basis, which means even a slight delay can result in additional costs.
Beyond the June 15 deadline, taxpayers must remember subsequent instalments: 45% of the total tax needs to be paid by September 15, 75% by December 15, and the full amount by March 15.
Meeting these deadlines is crucial for avoiding further interest accrual and ensuring a smooth tax filing process. It’s advisable for taxpayers to plan their finances accordingly to meet these obligations without last-minute hassles. Proper planning can help in managing cash flow efficiently and avoid any stress related to tax payments.