If you’re someone who pays advance tax, here’s an important reminder: the first instalment for the financial year 2025–26 is due on June 15. The Income Tax department has issued an alert on X, urging taxpayers to stay on track, saying, “1st instalment of Advance Tax for FY 2025–26 is due by 15th June 2025. Plan Smart. Pay Advance Tax.”
Advance tax is a way of paying your income tax in parts during the year, instead of paying it all at once at the end. If your total tax liability for the year exceeds Rs 10,000 then you’re required to pay it in advance, in four instalments. This rule applies to everyone whether you’re salaried, self-employed, a freelancer, or running a business.
You’re expected to pay 15 per cent of your total annual tax by June 15. For example, if your total tax for the year is Rs 1 lakh, you should pay Rs 15,000 by this date. Missing the deadline can lead to penalties and interest, so it’s a good idea to check your tax liability now and stay ahead to avoid extra charges later.
As per Section 234C of the Income Tax Act, if you miss your advance tax payment, you’ll be charged interest at 1 per cent per month on the unpaid amount. Over time, this adds up to 12 per cent a year. To avoid this extra cost, it’s important to pay your advance tax on time.
Over the year, missing advance tax deadlines can cost you up to 12 per cent extra in interest—an avoidable expense. Since the interest is calculated monthly, even a small delay can lead to additional charges. That’s why it’s important to stick to the due dates and stay financially stress-free.
After the June 15 deadline, there are three more instalments to keep in mind: 45% of your total tax should be paid by September 15, 75 per cent by December 15, and the full amount by March 15.
Sticking to this schedule is important to avoid extra interest and ensure a hassle-free tax filing experience. Planning your finances in advance can help you manage cash flow smoothly and stay stress-free when it comes to tax payments.
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