Take Advantage of the Extended Payment Deadline
The deadline for the third installment of advance tax for FY 2024-25 is December 15, 2024. However, since this date falls on a Sunday, taxpayers can make the payment on December 16, 2024, without incurring penalties. This extension is in line with a 1994 Income Tax Department circular, which allows for the next working day to be the new deadline if the original payment date falls on a public holiday.
No Penalties for Late Payment on December 16
If you have a tax liability exceeding Rs 10,000, you must pay advance tax by the due date. If the due date falls on a public holiday, you can make your payment the next day without worrying about interest or penalties. This flexibility applies to payments made on December 16, 2024, for the third installment of FY 2024-25.
The 1994 circular clearly states that if the due date falls on a holiday and the payment is made on the next working day, no penalties or interest will be charged.
The 1994 circular that allows an extended payment deadline when a due date falls on a holiday continues to benefit taxpayers today.
Pay Online for Convenience
While the payment deadline is extended to December 16, it is still advisable to make the payment as early as possible. With the rise of online payment platforms, you can easily pay your taxes even on holidays. Though the circular was issued before the availability of digital payments, the rule still applies. Taxpayers are encouraged to pay on time to avoid any potential issues.
| Payment Date | Action Required | Penalty or Interest |
|---|---|---|
| December 15, 2024 | Last day to pay | No penalty if paid by Dec 16 |
| December 16, 2024 | Extended payment date | No penalties or interest |
| After December 16, 2024 | Late payment | Interest applied |
Conclusion
The 1994 circular provides valuable relief for taxpayers who miss the advance tax payment due date of December 15, 2024. By making your payment on the next working day, December 16, 2024, you will avoid penalties and interest. Using online payment methods further simplifies the process, ensuring that you can meet your tax obligations even on holidays. Be sure to make your payment on time to stay compliant and avoid any complications.
