Big news for taxpayers. If your income tax bill is Rs 10,000 or more for the year, you need to pay advance tax. This is similar to regular tax, but instead of making one big payment at the end of the year, you split it into four installments throughout the year. If you haven’t paid your advance tax yet, you’ve got just three days left to do it—make sure to pay by March 15.
When do you need to pay this tax during the year?
The first installment is due on June 15, and you need to pay 15% of your estimated tax. Then, the second installment is due on September 15, where you should pay at least 45% of the total advance tax. The third installment is on December 15, and you need to cover at least 75% of your estimated tax. Finally, the last installment is due on March 15, and you should pay at least 90% of your estimated tax liability.
Who needs to pay advance tax?
If your employer deducts TDS from your salary and you have additional income, you also need to pay advance tax. This applies to anyone selling property, shares, mutual funds, or other assets between March 15 and March 31, as well as NRIs earning income in India. If you fall under the advance tax category and haven’t paid at least 90% of it by March 31, you’ll face a penalty of 1% per month on the unpaid tax starting April 1 until you file your ITR.
1. To pay your advance tax, start by visiting the Income Tax Department’s website. Look for the e-pay tax option and click on it.
2. You’ll need to input your PAN number along with the mobile number that’s linked to your Aadhaar-PAN.
3. Once you’re logged in, choose the assessment year 2025-26. Make sure to select Advance Tax as your payment type and hit Continue.
4. Next, enter the amount you want to pay and proceed with the payment. You can use net banking, a debit or credit card, or UPI for this.
5. After completing the payment, a challan will be generated, which you’ll need when filing your ITR.
6. If you prefer to pay offline, you can visit a bank branch and deposit your income tax using a challan.