Advance Tax Deadline Alert: Third Instalment is Due Today on Dec 15, 2025!

The advance tax deadline for payment of third instalment is due today, December 15, 2025. Taxpayers must ensure timely payment to avoid interest penalties.

What Is Advance Tax?

Advance Tax allows taxpayers to pay income tax in instalments during the year instead of paying a lump sum later. It works on the “Pay As You Earn” principle and helps manage cash flow efficiently.

Who Is Required to Pay?

Advance Tax applies to individuals, HUFs, firms and companies whose estimated net tax liability for the year is ₹10,000 or more after adjusting for TDS and TCS.

Resident senior citizens aged 60 years or above are exempt, provided they do not earn income from business or profession.

Which Payment is Due on December 15?

Advance Tax is paid in four instalments during the year:

• June 15: 15% of total tax
• September 15: 45% of total tax
• December 15: 75% of total tax
• March 15: 100% of total tax

By today, your cumulative Advance Tax payment should reach at least 75% of your estimated annual tax liability. If you paid 45% by September, you only need to pay the balance today.

Penalties for Delay

Missing the deadline or underpaying can attract interest under Section 234C at 1% per month on the shortfall for three months.

Further, if total Advance Tax paid by March 31 falls below 90% of the assessed tax, interest under Section 234B is charged from April 1 until payment is completed.

What You Should Do Today

Reassess your total income, including salary, business income, capital gains, interest and rent. Calculate 75% of your tax liability and deduct TDS and previous Advance Tax payments.

Pay the amount online through the Income Tax Department’s e-filing portal using the e-Pay Tax option and selecting “Advance Tax (100)”.

Conclusion

Paying the third Advance Tax instalment on time helps you stay compliant and avoid unnecessary interest. A quick check and timely payment today can save you both money and hassle.

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.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.