If you intend to settle your advance tax, the deadline for doing so is December 15. The second installment of advance tax for the third quarter of the 2024 financial year must be deposited by this date. Failing to meet this deadline will result in penalties and interest charges.

What is Advance Tax?
It is essential for every taxpayer to understand that advance tax is a form of income tax that must be deposited with the Income Tax Department before the conclusion of the financial year. Unlike regular taxes paid in a lump sum annually, advance tax is paid in installments.

Who is Required to Pay Advance Tax?
According to Section 208 of the Income Tax Act, individuals whose tax liability exceeds Rs 10,000 are obligated to pay advance tax. This applies to employees, freelancers, businesspersons, and individuals earning income through other means. Those aged 60 years and above who do not engage in any business are exempt from advance tax.

When is Advance Tax Payment Due?
Advance tax is not a one-time annual payment but is required to be paid in installments, with each quarter having a specified date set by the Income Tax Department. For the last financial years 2022-23 and recent financial years 2023-24, these dates are June 15, September 15, December 15, and March 15.

Consequences of Non-payment of Advance Tax
In situations where companies fail to deduct TDS correctly for employed individuals, creating an advance tax liability, it becomes necessary to verify and deposit the advance tax. If fail in doing so will result in penalties and also interest charges. Section 234B and 234C impose penalties for delays or shortfalls in advance tax payments. Section 234B is applicable for delays or shortfalls in payment, leading to penalties.