📢 Advance Tax – Q2 Due Date Alert!

 

🗓️ Due Date: 15th September 2025

If you are a taxpayer in India, staying compliant with your tax obligations is not just a legal requirement but also a smart financial practice. One of the key compliance activities for many taxpayers is the timely payment of Advance Tax. With the second instalment due date—15th September 2025—fast approaching, it’s important to understand what Advance Tax is, who needs to pay it, and how timely payment can save you from unnecessary penalties and stress.

🔍 What is Advance Tax?

Advance Tax, often referred to as the "pay-as-you-earn tax," is the system of paying your income tax in instalments throughout the financial year instead of paying it all at once at the end.

Under the Income Tax Act, if your total tax liability for the year is ₹10,000 or more (after TDS and other credits), you are required to pay Advance Tax. This ensures that the government receives tax revenue evenly throughout the year, and it helps taxpayers avoid the burden of paying a large lump sum at the time of filing their Income Tax Return (ITR).

💰 Who Should Pay Advance Tax?

Advance Tax is applicable to:

  1. Business owners & professionals with income not subject to full TDS.

  2. Freelancers and consultants who earn through projects or independent work.

  3. Investors earning capital gains, interest, rental income, or dividend income.

  4. Salaried employees if their employer has not deducted sufficient TDS on salary or if they have other income sources like rent, capital gains, or FD interest.

Essentially, anyone whose tax liability exceeds ₹10,000 in a financial year is required to pay Advance Tax.

📅 Advance Tax Payment Schedule

For the Financial Year 2025–26 (Assessment Year 2026–27), the Advance Tax schedule is as follows:

  • 15th June 2025 → At least 15% of total tax liability

  • 15th September 2025 → At least 45% of total tax liability (cumulative)

  • 15th December 2025 → At least 75% of total tax liability (cumulative)

  • 15th March 2026 → 100% of total tax liability

The upcoming instalment on 15th September 2025 requires you to ensure that 45% of your estimated tax liability for FY 2025–26 has been paid.

⚠️ What Happens If You Miss the Due Date?

Non-payment or delayed payment of Advance Tax attracts interest and penalties under Sections 234B and 234C of the Income Tax Act.

  • Section 234B: Interest for default in payment of Advance Tax (if less than 90% of tax liability is paid).

  • Section 234C: Interest for deferment of instalments or late payment.

These interests are charged at 1% per month, increasing the cost of non-compliance significantly. In addition, missing deadlines adds stress during ITR filing and may even impact financial planning.

✅ Benefits of Paying Advance Tax on Time

  1. Avoids Interest & Penalties – Timely payments save you from additional charges under Sections 234B and 234C.

  2. Improves Cash Flow Management – Paying in instalments reduces the burden of a lump-sum payment.

  3. Peace of Mind – You can file your ITR without worrying about last-minute dues.

  4. Better Financial Planning – Regular instalments encourage disciplined money management.

  5. Compliance Track Record – Timely compliance builds your credibility with tax authorities, which can be useful in audits or future dealings.

📝 How to Calculate Advance Tax?

To calculate your Advance Tax liability:

  1. Estimate your income for the financial year from all sources – salary, business, rent, capital gains, etc.

  2. Subtract eligible deductions under sections like 80C (LIC, PPF, ELSS), 80D (Health Insurance), 80E (Education Loan), and so on.

  3. Compute total tax liability using the applicable income tax slab rates.

  4. Deduct TDS/TCS already collected or deducted by employers, banks, or other entities.

  5. Balance tax liability should be paid as Advance Tax in instalments as per the schedule.

📌 Steps to Pay Advance Tax

  1. Visit the official Income Tax e-filing portal (https://www.incometax.gov.in).

  2. Log in using your PAN and password.

  3. Navigate to the e-Pay Tax option.

  4. Select the applicable challan (ITNS 280) and enter details.

  5. Pay using net banking, debit card, or other available options.

  6. Save the challan receipt for your records and future ITR filing.

🌟 How Taxla Services P. Ltd Can Help You

Tax calculations, deductions, and payments can often seem overwhelming, especially for those with multiple income sources. That’s where Taxla Services P. Ltd comes in.

Our team of expert tax practitioners ensures that you:

  • Accurately calculate your Advance Tax liability.

  • Claim all eligible deductions and exemptions.

  • Pay on time to avoid penalties.

  • Get stress-free assistance with tax filing, GST compliance, and other financial services.

We simplify the process, leaving you free to focus on your business and financial goals.

📞 Contact Us Today!

Don’t let tax deadlines stress you out. Stay compliant, avoid penalties, and plan your taxes smartly with our expert help.

📞 +91 7305701454
📧 auditsiva2@gmail.com
🌐 www.taxlaservices.com

#BestAuditorInTamilnadu #AdvanceTax #TaxCompliance #IncomeTaxFilingInKodungaiyur #TaxPlanning #TaxlaServices



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