As the financial year moves ahead, the Income Tax Department has reminded taxpayers of an important compliance deadline falling on December 15. Missing this cutoff can lead to penalties, interest charges and complications during annual filings. Tax experts are urging individuals, professionals and businesses to complete this mandatory tax task on time to avoid unnecessary fines.
Why December 15 Is an Important Date
December 15 marks the due date for paying the third installment of Advance Tax for the current financial year. Taxpayers who fall under the advance tax category such as salaried employees with additional income, self-employed professionals, business owners and high-income individuals must pay a fixed percentage of their estimated annual tax before this date.
Who Needs to Pay Advance Tax
Anyone whose total tax liability for the year exceeds the threshold set by the Income Tax Department is required to pay advance tax in installments. This includes individuals earning from business, profession, interest income, rent, capital gains and other sources. Even salaried employees with significant additional income may come under this requirement.
What Happens If You Miss the Deadline
Failure to pay the advance tax installment by December 15 triggers interest under sections 234B and 234C. This means taxpayers may have to pay extra charges when filing their Income Tax Return later. The penalty amount increases the longer the delay continues, creating an avoidable financial burden.
Paying Advance Tax Is Now Easy
With digital payment options available, taxpayers can pay advance tax online using net banking, debit card, UPI or through authorised banks. The process is quick and hassle-free, allowing individuals to complete the task in a few minutes. Keeping proper financial records and estimated income calculations ready can help avoid last-minute confusion.
Why Timely Payment Is Crucial
Advance tax helps distribute the tax burden throughout the year and prevents a heavy payment during the final ITR filing. Paying on time not only avoids penalties but also ensures smooth tax compliance. For businesses and professionals, this deadline holds special importance as accurate tax payment helps maintain clean financial statements.
Experts Advise Early Action
Tax consultants recommend not waiting until the last moment because payment portals may experience heavy traffic closer to the deadline. Completing the payment early ensures compliance and avoids accidental penalties caused by technical delays.