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December 15: Is Your Advance Tax Paid? Avoid Section 234C
8 Dec, 2025
Summary
- Pay 75% of advance tax by December 15 to avoid interest.
- Advance tax is required for estimated tax liability over ₹10,000.
- Salaried individuals and freelancers must monitor TDS for accuracy.
Taxpayers are reminded that the December 15 deadline for paying at least 75% of their advance tax is rapidly approaching. Failing to meet this crucial payment milestone will incur monthly interest penalties of 1% on the outstanding amount, as stipulated by Section 234C of the Income Tax Act, 1961.
This advance tax payment is mandated for any individual whose estimated total tax liability surpasses ₹10,000, after considering any tax deducted or collected at source (TDS). While many salaried employees have their tax obligations met through monthly TDS, individuals with variable incomes, such as freelancers and small business owners, must be particularly vigilant to ensure they are not falling short.
Resident senior citizens aged over 60, without business or professional income, are exempt from this requirement. All other taxpayers are advised to accurately calculate their projected tax liability and remit the December installment on time. Any remaining tax due after accounting for TDS and previous payments should be settled as self-assessment tax during the final tax return filing.
