Advance Tax Deadline Today: Pay 75% Liability or Face Penalty
New Delhi: The clock is ticking for taxpayers across India. The Income Tax Department has flagged December 15 as the critical deadline for the third installment of Advance Tax for the Financial Year 2025-26 (Assessment Year 2026-27). If you missed yesterday's cutoff, immediate action is required today to minimize penalties.
Who Needs to Pay Advance Tax?
Under the Income Tax Act, 1961, any individual or corporate entity whose estimated tax liability for the year (after deducting TDS/TCS) is ₹10,000 or more is liable to pay Advance Tax. This "Pay-As-You-Earn" scheme helps the government maintain a steady revenue flow and reduces the burden of a lump-sum payment for taxpayers at year-end.
Exceptions: Senior citizens (aged 60+) who do not have any income from business or profession are exempt from paying advance tax.
Payment Schedule FY 2025-26
| Deadline | % of Tax Liability |
|---|---|
| June 15, 2025 | 15% |
| Sept 15, 2025 | 45% |
| Dec 15, 2025 | 75% (Current Deadline) |
| March 15, 2026 | 100% |
Consequences of Missing the Deadline
Missing the December 15 deadline is costly. If the tax paid is less than 75% of the assessed tax, simple interest at 1% per month is levied under Section 234C on the shortfall amount for a period of 3 months.
