Income Tax Alert: The Income Tax Department has issued an important December 15 alert for taxpayers across India. If you fail to complete this mandatory tax-related work by the deadline, you may face penalties, interest charges, and compliance issues. With the date approaching fast, it is crucial to understand what needs to be done and who is affected.
What Is the December 15 Income Tax Deadline
December 15 is a key due date for advance tax payment, especially for individuals and businesses with taxable income beyond TDS deductions. This deadline applies to the third instalment of advance tax for the financial year, and missing it can attract penalties under the Income Tax Act.
Who Must Pay Advance Tax by December 15
Advance tax is mandatory for taxpayers whose total tax liability exceeds ₹10,000 in a financial year after TDS. This includes salaried individuals with additional income, freelancers, professionals, business owners, and investors earning from capital gains, rent, or interest.
What Happens If You Miss the Deadline
If advance tax is not paid by December 15, the Income Tax Department can impose interest under Sections 234B and 234C. This interest is calculated monthly and can significantly increase your overall tax burden, even if you pay the tax later.
How Much Tax Must Be Paid by December 15
By December 15, taxpayers are expected to have paid at least 75 percent of their total advance tax liability. Paying less than the required amount triggers interest penalties automatically.
December 15 Advance Tax Requirement at a Glance
| Item | Details |
|---|---|
| Deadline | December 15 |
| Applicable To | Individuals, professionals, businesses |
| Tax Type | Third instalment of advance tax |
| Required Payment | 75% of total tax liability |
| Penalty | Interest under Sections 234B & 234C |
How to Pay Advance Tax Easily
Advance tax can be paid online through the Income Tax e-Pay Tax portal using net banking, debit card, or UPI. Select the correct challan and assessment year carefully to avoid errors. After payment, save the challan receipt for future reference.
Common Mistakes Taxpayers Make
Many taxpayers assume TDS covers all liabilities and forget additional income like FD interest, capital gains, or freelance earnings. Others delay payment thinking penalties will be minimal, but interest continues to accumulate until full payment is made.
Who Gets Relief from Advance Tax Rules
Senior citizens aged 60 years or above without business income are exempt from paying advance tax. However, senior citizens with business or professional income must still comply with the rules.
One Quick Takeaway
If your tax liability crosses ₹10,000, pay your advance tax by December 15 to avoid penalties, interest, and last-minute stress during return filing.
Conclusion: The December 15 income tax deadline is not optional. Missing it can result in unnecessary fines and interest that could have been avoided with timely payment. Taxpayers should calculate their total income carefully, pay the required advance tax, and stay compliant to avoid trouble later during ITR filing.
Disclaimer: This article is for informational purposes only. Tax rules and penalties are subject to change under Income Tax laws. Taxpayers are advised to consult a tax professional or verify details on the official Income Tax Department portal.