Understanding the New Deadline for Advance Tax Payments
The third installment of advance tax for FY 2024-25 is due on December 15, 2024. However, since December 15 is a Sunday, many taxpayers might wonder if they can still make the payment on the next day, December 16, without facing penalties. According to a 1994 circular from the Income Tax Department, taxpayers can make the payment on the next working day when the deadline falls on a holiday.
The circular clarifies that if the last date for making the advance tax payment falls on a holiday, the next working day will be considered the new deadline. This means taxpayers now have until December 16, 2024, to make the payment, avoiding any penal interest.
No Penalty or Interest if Paid by December 16
Under the Income Tax Act, taxpayers are required to pay advance tax if their total tax liability exceeds Rs 10,000. Failing to do so can result in interest charges and penalties. However, with the rule in place, taxpayers are now allowed to pay their third installment of advance tax on December 16 without incurring any penalty or interest charges. This relaxation ensures that taxpayers don’t have to worry about missing the deadline due to a public holiday.
According to tax experts, the circular still holds validity today, and this payment extension applies to all taxpayers who are required to pay their advance tax. The extension is especially important for taxpayers who would otherwise be caught off guard by the Sunday deadline.
The rule that allows taxpayers to make advance tax payments on the next working day after a public holiday was established by the Income Tax Department in 1994. This provision continues to benefit taxpayers, ensuring they are not penalized for holidays falling on tax deadlines.
Paying Taxes Online Makes Things Easier
In today’s digital age, it’s easier than ever to make payments online, even on public holidays. The online payment platform is open 24/7, meaning you can make payments from the comfort of your home. However, it’s important to note that while the circular allows a one-day extension, online payments are now more accessible than they were in 1994.
Although the circular hasn’t been updated to reflect the ease of online transactions, taxpayers are still encouraged to pay their advance tax within the stipulated deadlines to avoid any potential issues. Online platforms make it easy to make payments on time, even on holidays. Taxpayers should take advantage of this convenience to ensure they meet their tax obligations without delay.
| Payment Date | What You Need to Do | Penalty or Interest |
|---|---|---|
| December 15, 2024 (Sunday) | Last payment day | Pay by Dec 16 without penalty |
| December 16, 2024 (Monday) | Extended payment day | No penalties or interest |
| After December 16, 2024 | Late payment | Interest applied |
Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, financial, or other professional advice. While every effort is made to ensure the accuracy and reliability of the information, laws and regulations may change, and individual circumstances vary.
Readers are encouraged to consult with qualified professionals or official government resources for personalized guidance regarding their specific situations. The author and publisher disclaim any liability for decisions made or actions taken based on the information provided herein.
