If your net tax liability after the adjustment of TDS is more than Rs. 10,000 per year, then you are liable to pay income tax. You can pay your advance taxes in three instalments, which are on 15th September, 15th December and 15th March of the financial year. The amount paid will be in a ration of 30%, 30% and 40% respectively as per your net tax liability for the year.
For instance, if your advance tax liability is Rs. 1,00,000, you will have to pay this in instalments of Rs. 30,000, 30,000 and 40,000 on 15th September, 15th December and 15th March respectively.
If you miss the Deadline of 15th September
In case you are unable to pay advance tax on time, or there are any shortfalls in the advance tax paid by you, you can still pay advance tax latest by the 31st March of the same financial year. However, for these defaults or shortfalls, you will have to submit or pay interest @ of 1 percent per month, for at least 3 months. Delay of a single day for advance tax payments is also taxable under the laws of income tax. So, in case you pay your advance tax on 16th of September, you will still be charged with an interest of 1 percent per month.
If you miss the deadline of 15th March
Well, all is not lost in case you fail to pay advance tax by the end of a financial year, you can still discharge the tax liabilities after the end of the financial year. However, the tax paid after the due date is treated as self-assessment tax and not as an advance tax. For not paying advance tax on time by the end of the financial year you will have to pay an interest of 1 percent for a part of a month from 1st April of the following year till you complete your liabilities of paying taxes. However, in case the shortfall of payment of advance tax is less than 10 percent of your tax liabilities then you will not to pay any interests. Moreover, with interest for not paying advance tax on time till the end of the financial year, you will also have to pay interest for not paying each of the instalments.
If you are a senior citizen and do not have any income taxable under the category of “Profits and gains if business and profession”, you will get an exemption from paying advance tax. Moreover, the net tax payable on your income for the complete year can be paid when you file income tax returns by their due date.