1 week ago

September 15 Advance Tax Deadline: Who Pays and How Much

Advance tax is money paid toward your yearly tax bill before the year ends.

By September 15, eligible taxpayers usually need to have paid 45% of their estimated tax liability in total.

This includes the amount they were supposed to pay by June 15.

They do not need to pay another 45% in September.

People may need to pay advance tax when their expected tax bill is at least ₹10,000 after other tax credits are counted.

This can include salaried people who earn extra money from interest, rent or capital gains.

Resident senior citizens without business or professional income generally do not have to pay it.

If income changes, taxpayers can update their estimates and adjust later payments.

Missing the required amount may result in additional interest.

Key facts

September target: Cumulative advance-tax payments should reach 45% of estimated liability by September 15.
Annual schedule: The regular milestones are 15% by June 15, 45% by September 15, 75% by December 15 and 100% by March 15.
Eligibility threshold: Advance tax generally applies when estimated tax liability is ₹10,000 or more after accounting for taxes already deducted or collected.
Potentially affected income: Bank interest, rent, capital gains, business income, professional income and freelance income may create an advance-tax liability.
Senior-citizen exception: Resident senior citizens without income from a business or profession are generally not required to pay advance tax.
Required review: Taxpayers should check income earned, expected future income, TDS, TCS and other applicable tax credits.
Consequence of short payment: Missing or underpaying advance tax can result in interest for deferment or short payment.

businesstoday.in · 1 week ago