Pay advance tax by March 31 to avoid penalties

If you missed the advance tax deadline of March 15, 2025, for the financial year 2024-25, you still have a chance to pay it without incurring high interest fees. You need to pay any remaining advance tax by March 31, 2025, to avoid additional charges. If you pay after March 31, you will face higher interest rates under Section 234B. This could cost you more than paying before that deadline. Even if you pay the last quarter of advance tax after March 15, it will still attract interest under Section 234C, but it will be less than the charges if you fail to pay by the end of the month. Advance tax is necessary for taxpayers whose total tax liability exceeds Rs 10,000 in a financial year. If you pay late, interest under Section 234C will be charged at 1% per month on the unpaid amount. For instance, if you paid 75% of your tax by December 15, 2024, but put off the remaining payment until March 17, the interest will only apply for one month. Tax experts advise paying as much of your advance tax as you can by the deadline to minimize interest costs. If you fail to pay 90% of your tax by April 1, 2025, you will incur even more interest under Section 234B. It's essential to remember that advance tax can only be paid within the financial year. Any tax paid after March 31, such as on April 2, will not count as advance tax but as self-assessment tax. This means you may still be liable for extra interest if your advance tax payments fall short.