As the financial year 2025 draws to a close, the deadline for advance tax filing is fast approaching. Taxpayers must submit their advance tax by March 15th. Failing to do so could result in additional penalties and interest on the owed amount.

Who is Required to Pay Advance Tax?
According to Section 208 of the Income Tax Act, individuals whose tax liability exceeds ₹10,000 must pay advance tax. This group includes employees, freelancers, and various businesses.

Consequences of Late Payment
If a taxpayer neglects to pay their advance tax by the March 15th deadline, they will incur a monthly interest charge of 1% on the unpaid tax, as stipulated in Section 234C. This interest starts accumulating from April 1st of the new financial year until the tax is settled.

However, if a taxpayer has already paid at least 90% of their tax, they will not face this interest charge.

Advance Tax Payment Schedule
Taxpayers typically make advance tax payments in four installments throughout the year.

Calculating Your Tax
To determine your tax liability, begin by assessing your total income, which includes salary, business profits, capital gains, and income from other sources like fixed deposits.

Next, apply any eligible deductions under sections 80C, 80D, and others.

This will yield your gross tax amount, which may differ based on whether you choose the old or new tax regime.

Finally, deduct any TDS or TCS from this amount.

By following these steps, you can accurately calculate and ensure your tax is paid before the March 15th deadline.