ITR Deadline: The Income Tax Return (ITR) deadline for the third instalment of advance tax is due on Monday, 15 December 2025, where all Indian taxpayers will have to pay their advance tax outstandings before the due date to avoid any future penalties.

What is advance tax?

Advance tax is an instalment of income tax, as per Section 207-219 of the Income Tax Act, under which a taxpayer pays their dues throughout the year before the end of the financial year, giving them an alternative to pay via partial payment instead of a lump sum at the end of the fiscal year.

During a financial year, the taxpayers are eligible to pay their total income tax due through a fixed percentage rate via four instalments on the dates fixed by the Income Tax Department.

Advance tax instalment dates

1. First instalment: The Advance tax dues must be cleared on or before 15 June 2025. (15% of the tax liability)

2. Second instalment: The Advance tax dues must be cleared on or before 15 September 2025. (45% of the tax liability, less advance tax already paid)

3. Third instalment: The Advance tax dues must be cleared on or before 15 December 2025. (75% of the tax liability, less advance tax already paid)

4. Final instalment: The Advance tax dues must be cleared on or before 15 December 2025. (100% of the remaining tax liability, less advance tax already paid)

According to Cleartax data, no interest under Section 234C shall be levied on the taxpayer if they have paid advance tax up to 12% in the first instalment and up to 36% in the second instalment.

Who needs to pay advance tax?

Indian taxpayers who have an estimated tax liability which surpasses ₹10,000 are required to pay advance tax under Section 208 of the Income Tax Act. The advance tax has to be paid by both individuals, corporates, freelancers, and even businesses that are earning in the country.

However, if the citizen is of the age of 60 years or older (a senior citizen), who do not have any income from a business or a profession during the financial year will be exempted from the advance tax component. But if they own any business or are involved in a profession even beyond the age limit, then they will also have to pay the advance tax dues.

If the taxpayers who are supposed to pay their dues do not end up paying before the deadline, then it would attract a 1% per month interest rate under Sections 234B and 234C of the Income Tax Act.

How to calculate advance tax?

Taxation services firm, Cleartax data, highlighted a step-by-step guide on how to identify how much tax liability and instalment amount you potentially owe to the government.

Step 1. You have to first look at your income earned for the previous financial years.

Step 2. After identifying how much you earned, you will now have to see how much more you are earning in the current financial year compared to the previous financial years.

Step 3. You will also have to deduct the total eligible deductions and exemptions under your individual tax regime.

Step 4: Now you will be able to estimate your total taxable income, and using a calculator, you will be able to calculate the tax liability under specific tax regimes.

You can calculate your income tax liability directly from the Income Tax Department website at — https://eportal.incometax.gov.in/iec/foservices/#/TaxCalc/calculator.

How to pay advance tax?

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 like 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 your details like phone number, address, assessment year, email ID, bank name, among other things.

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

After entering the necessary details and making payment, the advance tax instalment payment will be completed, and you will receive a challan number. If you seek more information related to this, you can also visit the official Income Tax Department website.