Advance tax deadline today news LIVE: Final instalment to be paid on 15 March — what happens if you miss it?

Taxpayers have the option to pay the final advance tax instalment using a credit card through the income tax e-payment portal. However, banks or payment gateways may levy a small convenience or processing fee for credit card transactions.

The Income Tax Department on Saturday advised taxpayers to verify their transaction details through the e-Campaign tab on the Compliance Portal, accessible via the e-Filing portal.

Individuals in the senior citizen category, specifically those 60 years of age or older who lack earnings from a business or vocational practice, are exempt from the obligation to submit advance tax payments.

Regarding freelancers and experts, the March 15 advance tax deadline is especially critical since it generally encompasses nearly the total advance tax obligation for the fiscal period.

Individuals choosing simplified taxation frameworks are granted an easier regulatory procedure. Rather than submitting various payments throughout the period, they may settle their complete advance tax in one individual payment by March 15.

The Income Tax Department on Saturday asked taxpayers to ignore emails, if any, received alerting taxpayers regarding ‘significant transaction’ as part of the Advance Tax e-campaign.

In a post on X, the Central Board of Direct Taxes (CBDT) said certain taxpayers have received emails containing inaccurate details regarding ‘significant transactions’ undertaken by them as part of the ongoing Advance Tax e-Campaign for AY 2026-27 (Financial Year 2025-26).

“We are actively working to resolve this matter in coordination with our service provider. In the meantime, taxpayers are requested to kindly ignore the earlier email communication related to the Advance Tax e-Campaign for AY 2026-27 (Financial Year 2025-26),” the CBDT said.

One can pay advance tax through the official website of the Income Tax Department website. (Direct link: https://www.incometax.gov.in/iec/foportal/)

These banks are authorised on I-T e-filing portal for tax payments:

Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank ,IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab & Sind Bank, Punjab National Bank, RBL Bank, South Indian Bank, State Bank of India, UCO Bank & Union Bank of India

Apart from net banking and debit cards, people often wonder whether credit cards can also be used to settle their advance tax dues before the deadline.

Taxpayers have the option to pay the final advance tax instalment using a credit card through the income tax e-payment portal. However, banks or payment gateways may levy a small convenience or processing fee for credit card transactions.

Today, 15th March, is the last day to pay Advance Tax for FY 2025-26. Individuals must clear their dues by the deadline to avoid interest and penalties.

“Traders and investors, please ensure your payments are completed before the deadline to avoid interest and penalties,” Zerodha said in a X post on Sunday.

The stockbroker added, “To help you meet the deadline, we will be processing payout requests received by 4:00 PM today.”

Advance tax refers to an income tax system in India where taxpayers pay estimated tax in instalments during the financial year rather than a lump sum at the time of filing the income tax return.

Taxpayers are required to calculate the estimated total income at the start of the financial year, thereby providing an estimate of the tax liability. The advance tax payment is made through a certain percentage of the four instalments.

The Income Tax department on Saturday asked taxpayers to ignore emails, if any, received alerting taxpayers regarding ‘significant transaction’ as part of the Advance Tax e-campaign.

In a post on X, the Central Board of Direct Taxes (CBDT) said certain taxpayers have received emails containing inaccurate details regarding ‘significant transactions’ undertaken by them as part of the ongoing Advance Tax e-Campaign for AY 2026-27 (Financial Year 2025-26).

“We are actively working to resolve this matter in coordination with our service provider. In the meantime, taxpayers are requested to kindly ignore the earlier email communication related to the Advance Tax e-Campaign for AY 2026-27 (Financial Year 2025-26),” the CBDT said.

If a taxpayer is declaring their business or professional income in accordance with the presumptive tax scheme of section 44AD or section 44ADA, they do not have to pay advance tax in four instalments like other taxpayers.

Instead, they are required to discharge the whole amount of his advance tax liability on or before March 15th of the previous year.

Thus, they can pay 100% of the advance tax in a single instalment on or before March 15 of the previous year.

Taxpayers who either miss the instalment or pay less than the required amount are liable to pay interest of 1% per month on the unpaid portion of the tax.

Additionally, if less than 90% of the total tax liability is paid by 15 March, interest under Section 234B may continue to apply on the remaining amount until the dues are fully cleared.

Here’s a list of individuals and entities who are required to pay advance tax:

— Freelancers and consultants: An independent professional or consultant earning fees needs to estimate annual income and pay taxes quarterly.

— Individuals receiving rental income: An individual receiving rent must pay advance tax on this income.

— Capital gains: A taxpayer who sold stocks, property or mutual funds must pay tax on these gains in the quarter the sale occurred.

— Interest income: Individuals earning interest income from fixed deposits or other sources.

— Additional income not covered by TDS: Even salaried individuals may need to pay advance tax if they have additional income that is not fully covered by TDS, such as profits from the sale of stocks, cryptocurrency gains, and rental income.

In case an individual fails to pay advance tax by the prescribed deadline, interest may be charged under Sections 234B and 234C of the Income Tax Act.

Hence, it is advised to clear your dues on time.

Resident senior citizens, who are aged 60 years or above, and do not have any income from business or profession are not required to pay advance tax.

Here’s a step-by-step guide on how a taxpayer can clear their advance tax dues online.

Step 1: Visit the Income Tax Department website. (Direct link: https://www.incometax.gov.in/iec/foportal/)

Step 2: Select the “E-pay” option from the Quick Links dropdown.

Step 3: Enter your details, such as PAN and mobile number, then click on the “continue” option.

Step 4: Enter the verification OTP received on your registered mobile phone number, then select “proceed.”

Step 5: Select the “Income Tax” option and click on the “continue” option.

Step 6: Enter the remaining details like phone number, address, assessment year, email ID, and bank name.

Step 7: You will then be directed to a payment page.

The Income Tax Department has set four stages during the year, in which taxpayers can pay their estimated advance tax.

— 15 June: 15% of total tax liability

— 15 September: 45% of total tax liability

— 15 December: 75% of total tax liability

— 15 March: 100% of total tax liability