The financial year 2025 is coming to an end. Meanwhile, the advance tax filing deadline is also approaching. March 15th is the deadline for filing the advance tax. If you fail to pay your advance tax before this deadline, you will have to pay the tax later, including a higher penalty and interest.

Who Pays Advance Tax?
Under Section 208 of the Income Tax Act, if a person's tax payment is ₹10,000 or more, they are required to pay advance tax. These taxpayers include employees, freelancers, and businesses.

What if tax is not paid on time?
If a taxpayer forgets to pay their tax before the deadline (March 15th), 1% interest is charged on their tax every month under Section 234C. This interest begins to accrue on your tax from April 1st of the new financial year and will continue until the payment is made.

If a person has paid up to 90% of their tax, 1% interest will not be charged.

Tax Payments Made in Installments

According to information available on this matter, taxpayers pay advance tax in four different installments.

How to Calculate Tax?
First, you need to look at your total income. This includes your salary or, if you are a businessman, profit, capital gains, and income from other sources (such as fixed deposits).

Now, apply deductions under sections 80C, 80D, etc.

Then, you will be presented with the gross tax value. This value may vary depending on the old tax regime and the new tax regime.

Finally, you will need to subtract TDS or TCS.

This way, you can easily calculate and pay your tax. Remember, you must pay the tax before March 15th.

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