The deadline for the payment of advance tax for the financial year 2020-21 is set to end tomorrow, March 15th. Advance tax is also known as pay-as-you-earn (PAYE) tax, and it must be paid by individuals who are expected to pay a tax liability of Rs 10,000 or more during the year.
Advance tax is paid in four instalments during the financial year. The first instalment is due on or before 15th June, the second on 15th September, the third on 15th December and the fourth and last instalment is due on or before 15th March.
Individuals must pay advance tax by the due date in order to avoid any penalties or interest. The interest rate applicable is 1% per month on the amount of tax due.
Taxpayers can pay their advance tax online through the official website of the Income Tax Department. They can also make payments via cheque, demand draft or NEFT/RTGS.
Taxpayers are advised to pay their advance tax before the deadline in order to avoid any inconvenience.