By Sheetal Kumari | March 3, 2025
Moneycontrol PF Team| September 15, 2025
Advance tax penalty: How much late interest you need to pay?
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Advance tax means paying income tax in instalments during the financial year.
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Taxpayers with tax liability over ₹10,000 in a year must pay advance tax.
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Senior citizens without business income and salaried individuals with correct TDS deductions need not pay.
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June 15 (15%), Sept 15 (45%), Dec 15 (75%), March 15 (100%).
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The due date to pay the second instalment is September 15, 2025.
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A penal interest of 1% per month is levied under Sections 234B and 234C.
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Applies if there is delay or shortfall in overall advance tax payment.
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Applies for non-payment or underpayment of specific instalments.
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Less than 12% by June, 36% by Sept, 75% by Dec, or 100% by March attracts interest.
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Capital gains, lottery winnings, first-time business income, and dividend shortfalls are exempt if tax is cleared in later instalments.
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