The Income Tax Department has extended the ITR filing due date for non-audit taxpayers (individuals & HUFs) from 31st July 2025 to 15th September 2025.
But this extension brings confusion โ especially around interest on late tax payments. Letโs break it down simply.
๐งพ What Is Advance Tax?
Advance Tax means paying your taxes in parts during the year rather than in one go at year-end. It applies to individuals with tax liability over โน10,000 after TDS.
๐งฎ Who Must Pay Advance Tax?
- Salaried persons with income from other sources (FDs, capital gains, etc.)
- Freelancers or professionals under Section 44ADA
- Presumptive income taxpayers under Section 44AD
- Stock traders or capital gain earners
Senior citizens without business income are exempt.
๐๏ธ Advance Tax Payment Schedule (FY 2024-25)
| Installment | Due Date | % of Tax |
|---|---|---|
| 1st | 15th June | 15% |
| 2nd | 15th September | 45% |
| 3rd | 15th December | 75% |
| 4th | 15th March | 100% |
๐ฐ What Is Self-Assessment Tax?
Itโs the final tax you pay after year-end when you tally your total income and TDS. Failing to pay this on time invites interest under sections 234A, 234B, and 234C.
โ๏ธ Breakdown of Sections
- Section 234A โ Interest for delay in ITR filing (starts after 15th Sept 2025)
- Section 234B โ For paying less than 90% of total tax before 31st March (1% interest/month)
- Section 234C โ For late/missed advance tax installments
โ ๏ธ Key Implications
- โ No 234A interest if filed by 15th Sept 2025
- โ 234B and 234C still apply if advance tax wasnโt paid correctly
โ Summary
- ๐ ITR due date: 15th September 2025
- ๐ก No 234A interest if filed on time
- ๐ 234B/234C applicable as per advance tax rules
Need help calculating interest or planning advance tax? ๐ Click here for expert guidance