New Delhi: The due date for paying the second installment of advance tax for the financial year 2025-26 (assessment year 2026–27) )is March 15, failing to pay may attract a penalty, according to the Income Tax department.
Who Is Liable To Pay Advance Tax
The income tax rules as per section 208, says that every person whose estimated tax liability for the year is Rs 10,000 or more, shall pay his/her tax in advance, in the form of “advance tax”.
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Person Not Liable To Pay Advance Tax
Every person whose estimated tax liability for the year is Rs 10,000 or more is liable to pay advance tax. However, a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax.
Due Dates For Payment Of Advance Tax
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Those liable to pay Advance tax, should know that it is to be paid in 4 different instalments. The due dates for payment of different instalments of advance tax are as follows:
| Status | By 15th June | By 15th Sept | By 15th Dec | By 15th March |
| All assessees (other than the eligible assessee as referred to in Section 44AD or section 44ADA) | Minimum 15% of advance tax | Minimum 45% of advance tax | Minimum 75% of advance tax | Minimum 100% of advance tax |
| Taxpayers who opted for presumptive taxation scheme of section 44AD or section 44ADA | Nil | Nil | Nil | Minimum 100% of Advance tax |
Any tax paid till 31st March will be treated as advance tax. If the last day for payment of any instalment of advance tax is a day on which the banks are closed, then the taxpayer should pay the advance tax on the immediately following working day.
Advance Tax Interest And Penalty
As per the norms, interest at 1 per cent per month will be charged on any shortfall in advance tax paid by the due dates of June 15, September 15, December 15, and March 15.
The penalty will apply if the tax paid is less than 12 per cent, 36 per cent, 75 per cent, and 100 per cent of the total due by these respective dates.
