By Sheetal Kumari | March 3, 2025

Moneycontrol PF Team| September 15, 2025

Advance tax penalty: How much late interest you need to pay?

(Image: Canva)

(Image: Canva)

(Image: Canva)

Advance tax means paying income tax in instalments during the financial year.

What is Advance Tax?

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Taxpayers with tax liability over ₹10,000 in a year must pay advance tax.

Who Needs to Pay?

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Senior citizens without business income and salaried individuals with correct TDS deductions need not pay.

Exemptions Apply

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

June 15 (15%), Sept 15 (45%), Dec 15 (75%), March 15 (100%).

Advance Tax Deadlines

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

The due date to pay the second instalment is September 15, 2025.

Q2 Deadline for FY 2025-26

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

A penal interest of 1% per month is levied under Sections 234B and 234C.

Penalty for Missing Deadline

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Applies if there is delay or shortfall in overall advance tax payment.

Section 234B

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Applies for non-payment or underpayment of specific instalments.

Section 234C

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Less than 12% by June, 36% by Sept, 75% by Dec, or 100% by March attracts interest.

Interest Rules

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Capital gains, lottery winnings, first-time business income, and dividend shortfalls are exempt if tax is cleared in later instalments.

Exceptions to Penalty

(Image: Canva)

Next: Gold rate today, September 12: Check rates of 24K & 22K in Delhi, Mumbai, Chennai and other cities
Thanks For Reading !
Find out More