Fourth Installment of Advance Tax (Q4)

Under Section 208 of the Income Tax Act, taxpayers with an estimated net tax liability exceeding ₹10,000 must pay their taxes in advance. For the fourth and final installment due on March 15th, you are required to have paid 100% of your total estimated advance tax for the financial year.

Important Considerations:

1. Presumptive Taxation Filers: If you are a small business owner or professional operating under the Presumptive Taxation Scheme (Section 44AD or 44ADA), this is your mandatory advance tax deadline. You must pay 100% of your advance tax in this single installment by March 15th. 2. Penalties for Shortfall (Section 234C): If the total advance tax paid by March 15th is less than 100%, it attracts penal interest under Section 234C at 1% per month on the shortfall amount. 3. Penalty for Underpayment (Section 234B): If you fail to pay at least 90% of your total assessed tax by the end of the financial year (March 31st), you will additionally be hit with Section 234B penal interest at 1% per month from April 1st until the tax is fully paid. (Note: Any advance tax paid on or before March 31st is treated as advance tax paid during the financial year, though payments between March 16 and March 31 still attract 234C interest).