Prepay 2024 income taxes: Last installment due March 15

Prepayment allows taxpayers to spread income taxes throughout the year.

Today, March 15, 2024, is the deadline for Indian taxpayers to pay the fourth and final advance tax payment for the financial year 2023-24. Missing this deadline may result in penalties and interest charges.

Prepayment of tax allows taxpayers to spread income tax throughout the year rather than paying a large lump sum at the end of the financial year. This system ensures a steady flow of government tax revenue.

Who needs to pay advance tax?

Salaried individuals, freelancers and businesses: If your total tax liability for the financial year is expected to exceed Rs 10,000, you need to pay advance tax.

Senior citizens: People aged 60 and above with no business income are exempt from tax. However, senior citizens with business income must pay advance tax.

Presumptive income taxpayers: Businesses and professionals under the presumptive tax scheme (sections 44AD and 44ADA) can choose to pay the entire advance tax in one lump sum before March 15 or March 31.

How to prepay income tax?

Eligible taxpayers must prepay income tax in four installments throughout the financial year, usually in June, September, December and March. These payments can be made conveniently online through the official website of the Income Tax Department (venuetaxindia.gov.in) or the National Securities Depository.

Act now to avoid penalties

The Income Tax Department has urged all taxpayers to pay advance tax before the deadline.
Otherwise interest may be charged under Sections 234B and 234C of the Income Tax Act.

For more information on advance tax and how to calculate your liability, taxpayers can visit the Income Tax Department’s website.