Paying advance tax on or before December 15 can lead to significant savings by avoiding penalties and interest charges that accrue for late payments. Taxpayers can benefit from calculating their estimated tax liability and making timely payments, especially as the December 15 deadline approaches, thus ensuring compliance with tax regulations and potentially improving cash flow management. By adhering to advance tax schedules, individuals can also take advantage of any available deductions and optimize their overall tax liability for the financial year.

Income tax paid in installments as opposed to all at once is known as advance tax. Taxpayers who owe more than ₹10,000 must pay by the due date in order to avoid fines.

"Advance tax" refers to the amount of income tax that must be paid by the due dates in installments rather than all at once. Income tax must be paid in advance by both individuals and businesses in regular installments as opposed to all at once.

Taxpayers are required to pay advance tax if their income tax bill exceeds ₹10,000; if not, they risk penalties and criminal interest. As a result, the third advance tax installment for FY 2024–2025 is due on December 15, 2024, during the third quarter.

Which individuals are excluded from paying taxes in advance?
"Resident senior citizens who were 60 years of age or older during the relevant financial year and do not have income from business or profession are exempt from the requirement of paying advance tax," said Balwant Jain, a tax and investment specialist based in Mumbai.

before paying your advance tax before December 15, you can avoid interest penalties under Sections 234B and 234C of the Income Tax Act.

This is the amount of money you can save by making on-time advance tax payments.
"You will be charged interest at the rate of 1% per month (12% annually) if you fail to pay your advance tax on time or at all. Interest is charged for three months for any delay, even if it is just one day past the deadline. For example, even if you pay the ₹30,000 that is due on December 15th, you would still be required to pay ₹900 in interest for the default if your advance tax liability is ₹1 lakh, according to Mumbai-based tax and investment specialist Balwant Jain.Balwant Jain, a Mumbai-based tax and investment specialist, clarified.

For instance, suppose your entire tax obligation is ₹1,00,000. for failing to pay the ₹75,000 (75% of tax) third advance tax installment by December 15. For every month until payment, you will be required to pay 1% interest on the gap. Therefore, paying your taxes on time helps you save money and keep your tax compliance record clean," stated Abhishek Soni, CEO and co-founder of Tax2win.

Payment deadline for advance taxes: June 15th: 15% of the advance tax is due.

September 15: Pay 45% of the advance tax and deduct any taxes that have already been paid.

December 15: Pay 75% of the advance tax after subtracting any taxes that have already been paid.

March 15: Pay the outstanding advance tax sum after deducting any taxes that have already been paid.