Explained: Can You Pay Advance Tax on Monday, June 16, 2025?

The first instalment of advance tax for the financial year 2025-26 was officially due on June 15, 2025. However, this date fell on a Sunday, leading many taxpayers to wonder if they could make their payments on the following day, Monday, June 16, without facing penalties. Good news for taxpayers: a long-standing rule offers a solution. 

Understanding CBDT’s Rule on Advance Tax 

According to a circular issued by the Central Board of Direct Taxes (CBDT) way back on January 14, 1994 (Circular No. 676), if a tax deadline falls on a public holiday, the deadline is automatically extended to the next working day. Since June 15, 2025, was a Sunday, this means taxpayers can indeed make their first advance tax payment on June 16, 2025, without being charged any penalty or interest. 

Who Needs to Pay Advance Tax? 

Advance tax applies to salaried professionals, freelancers, and business owners whose total tax liability for the year is expected to be more than ₹10,000. This tax is paid in four instalments throughout the year: 

• 1st Instalment: 15% of total tax liability, due by June 15. 

• 2nd Instalment: 45% of total tax liability, due by September 15. 

• 3rd Instalment: 75% of total tax liability, due by December 15. 

• 4th Instalment: 100% of total tax liability, due by March 15. 

Penalties for Late Payments of Advance Tax

It's crucial to stick to these deadlines to avoid extra costs. If you miss an advance tax deadline, you will be charged interest under Section 234C of the Income Tax Act. This interest is calculated at 1% per year on the unpaid tax amount, and it can add up to 12% by the end of the financial year. So, paying on time is essential to save money. 

Can the Income Tax Department Refuse Advance Tax Now?  

While electronic payment facilities offer great convenience for paying taxes anytime, anywhere, the 1994 circular still provides important flexibility, especially when deadlines fall on holidays. Tax authorities might sometimes argue that digital payments eliminate the need for such extensions. However, for now, taxpayers can rely on the circular system. 

Read more: Hindustan Zinc Interim Dividend of ₹10 Record Date Tomorrow, June 17, 2025 

Conclusion 

As tax deadlines approach, it's always best to plan your tax payments. Understanding rules like the 1994 circular and utilising electronic payment options effectively can help you meet your tax obligations smoothly.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.