Advance Tax – Last Installment Due – 15th March

09 March 2023

Attention all taxpayers in India! Just a friendly reminder that the due date for the last installment of advance tax is approaching. If you’re having an estimated tax liability of Rs. 10,000 or more, you need to pay advance tax in four installments during the financial year.
The due date for the last installment, which is 100% of the estimated tax liability minus the previous installments paid, is on March 15th. Don’t forget to pay on time to avoid penalties and interest!

Consequences of non-payment of advance tax:
1. Penalty: If you don’t pay advance tax on time, you’ll be liable to pay a penalty. The penalty is levied at 1% per month or part of a month for the period of delay.
2. Interest: You’ll also be charged interest on the amount of advance tax that you haven’t paid. The interest rate is currently 1% per month or part of a month.
3. Cash flow problems: If you don’t pay advance tax on time, you may face cash flow problems later in the year when the tax liability becomes due. This can lead to financial stress and affect your business operations.
4. Loss of credibility: Non-payment of advance tax can also damage your credibility with financial institutions and potential investors. It shows a lack of financial discipline and responsibility.

So, it’s important to pay advance tax on time to avoid these consequences and ensure smooth financial operations.

Don’t forget the due date of March 15th for the last installment of advance tax!

March

24

2023

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