Advance Tax Payment: Alert! Pay By Today To Avoid Penalties. Here’s How You Can File It

It is to be noted in case of failure to make the advance tax payment, the taxpayer will be liable for interest under Section 234B and 234C for default in payment of advance tax.

An individual whose estimated tax liability for the year is ₹10,000 or more is required to pay advance tax. The advance tax payment can be made in four instalments in the financial year. So, the last date for fourth instalment of advance tax falls on Monday.

What are the penalties?

In case of failure to make the advance tax payment, the taxpayer will be liable for interest under Section 234B and 234C for default in payment of advance tax. Under Section 234B, interest will be levied if the taxpayer has not deposited advance tax or if the advance tax deposited is less than 90 per cent of the total tax liability. Under Section 234B, the taxpayer will be liable at 1 per cent per month or part of the month from April uptil the date of tax payment. Also Read: 5 IPOs This Week: From Craftsman Automation To Nazara Technologies, Companies Expect To Raise Over ₹3,700 Crore. Check Details

Under Section 234C interest will have to be paid if advance tax paid in any instalment(s) is lesser than prescribed percentage of instalment amount.

On the other hand, interest under Section 234C will be levied at 1 per cent or part of the month for the period of default. The period of default is three months in case of shortfall in payment of 1st, 2nd and 3rd instalment and for one month in case of shortfall of last instalment.

However, an elderly person or senior citizen (an individual of age 60 years or above), not having an income from business or profession won't be liable to pay advance tax.

How to file Advance Income Tax?

• Firstly, log in to the official website of Income Tax department and visit the e-payment facility.


• Then select the right form for the payments of Advance Tax. Remember the form is ITNS 280 for individuals.


• Make sure to fill in the correct code for Advance Tax and other deails including name, address, PAN, mobile number, etc.


• Then click on proceeds which will direct you to a payment gateway or net banking page. Make the payment.


• Lastly, make the payment which will generate a receipt called Challan 280 in the next screen. Remember to save copy of the receipt.


• If you want to pay offline, then use tax payment challans (challan no. 280) at bank branches authorised by the Income Tax Department.