Last Chance! Advance Tax First Instalment Due June 15—Check If You Need To Pay

New Delhi: If you’re any individual who will pay advance tax, right here’s crucial reminder: the primary instalment for the monetary yr 2025–26 is due on June 15. The Income Tax division has issued an alert on X, urging taxpayers to stick on target, announcing, “1st instalment of Advance Tax for FY 2025–26 is due by 15th June 2025. Plan Smart. Pay Advance Tax.”

How Does Advance Tax Work?

Advance tax is some way of paying your source of revenue tax in portions all the way through the yr, as an alternative of paying it unexpectedly on the finish. If your overall tax legal responsibility for the yr exceeds Rs 10,000 you then’re required to pay it prematurely, in 4 instalments. This rule applies to everybody whether or not you’re salaried, self-employed, a freelancer, or working a industry.

You’re anticipated to pay 15 in keeping with cent of your overall annual tax by means of June 15. For instance, in case your overall tax for the yr is Rs 1 lakh, you must pay Rs 15,000 by means of this date.  Missing the cut-off date can result in consequences and pastime, so it’s a good suggestion to test your tax legal responsibility now and keep forward to keep away from additional fees later.

As in keeping with Section 234C of the Income Tax Act, when you omit your advance tax cost, you’ll be charged pastime at 1 in keeping with cent per thirty days at the unpaid quantity. Over time, this provides as much as 12 in keeping with cent a yr. To keep away from this additional value, it’s vital to pay your advance tax on time.

Over the yr, lacking advance tax points in time can value you as much as 12 in keeping with cent additional in pastime—an avoidable expense. Since the pastime is calculated per 30 days, even a small prolong can result in further fees. That’s why it’s vital to keep on with the due dates and keep financially enjoyable.

Advance Tax Payment Schedule

After the June 15 cut-off date, there are 3 extra instalments to remember: 45% of your overall tax must be paid by means of September 15, 75 in keeping with cent by means of December 15, and the whole quantity by means of March 15.

Sticking to this agenda is vital to keep away from additional pastime and make sure a hassle-free tax submitting enjoy. Planning your budget prematurely assist you to set up money waft easily and keep enjoyable with regards to tax bills.