The due date for payment of the third instalment of Advance Tax for the Financial Year 2025-26 is 15th December 2025.
All the taxpayers — other than salary income category are required to pay Advance Tax if their total tax liability for the year is ₹10,000 or more, after considering TDS/TCS credits.
This third instalment represents 75% of the total Advance Tax liability that should be discharged by the due date. Timely payment ensures continued tax compliance and helps avoid last-minute financial pressure during the year-end closing.
Advance Tax follows the concept of “pay-as-you-earn”, allowing taxpayers to distribute their tax payments throughout the financial year rather than paying a lump sum at the end. It supports better cash flow management, responsible financial planning, and strengthens compliance discipline.
Failure to pay the due amount or delay in payment may attract interest under Sections 234B and 234C of the Income Tax Act, 1961. These interests are levied for shortfall or late payment of Advance Tax and can increase the overall tax burden.
Taxpayers are advised to review their income estimates, available deductions, and TDS credits to accurately compute their Advance Tax liability. Payments can be made online through the Income Tax e-Pay Tax (TIN 2.0) portal via Net Banking, Debit Card, or other authorized modes.
Making timely payment not only helps avoid interest but also reflects prudent tax management.
So, mark your calendar – 15th December 2025 – and ensure your 3rd Advance Tax instalment is paid on time to stay compliant and stress-free!