Advance Tax Deposit Last Date for Third Installment

If the Income Tax Liability of any taxpayer is more than Rs. 10,000 in a financial year, then he is liable to pay such tax in installments during the year itself rather than paying this tax at the end of the year. This tax which is payable during the year is called “Advance Tax” or “pay as you earn tax” as tax is liable to be paid at the time the income is earned i.e. during the year rather than paying this tax at the end of the year.

For Individuals earning only Salary Income as the sole source of income, Advance Tax is not applicable as it would be taken care of by the TDS deducted by the employer at the time of payment of salaries as reflected in Form 16. 

For all taxpayers earning income from any source other than salary, Advance Tax is payable in installments as explained below.

The due dates and the percentage of installments of Advance Tax for assessees other than Companies are as below

Due Date of instalments	Amount payable
1st on or before 15th September.	Amount not less than 30% of such advance tax.
2nd on or before 15th December.	Amount not less than 60% of such advance tax after deducting amount paid in earlier installment.
3rd on or before 15th March.	Entire balance amount of such advance tax.

In case of companies, there are 4 instalments of advance tax payable on or before 15th June (15%); 15th Sept. (45%); 15th Dec. (75%); & balance amount of Advance Tax payable by 15th March. Also, any amount paid by way of Advance Tax on or before the 31st March of that year, is treated as Advance Tax Paid during that Financial Year. The percentages of 45% and 75% specified with reference to dates of 15th Sept. and 15th Dec. include the amount of advance tax paid earlier during the year.

Interest on Late Payment of Advance Tax:

If the Income Tax is not payable as per the above schedule, Interest is liable to be paid for late payment of tax as follows

1.     Interest under section 234C – Interest @ 1% per month is payable if the tax is not paid as per the above schedule i.e. for Deferment in Installments of Advance Tax

2.     Interest under section 234B – Interest @ 1% is payable if 90% of the tax is not paid before the end of the financial year i.e. for Default in Payment of Advance Tax

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