Deadline for Advance Tax Payment Extended for North Eastern states

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Deadline for Advance Tax Payment
Deadline for Advance Tax Payment

Due to the intense protests happening across the north-eastern states of India over the Citizenship Amendment Act, internet services have been on a lockdown in many places since last few days. In view of this scenario, the Income Tax department has decided to extend the deadline for the third installment of advance tax payment by 15 days for north-eastern states.

According to Section 208 of the Income Tax Act, 1961, if your estimated tax liability for any given financial year crosses ₹10,000 then you are supposed to pay advance tax. Advance tax payments, under the direct taxes’ category, are to be made four times in a financial year- June 15 (15 % of advance tax), September 15 (45% of advance tax paid), December 15 (75% of advance tax paid) and March 15 (100% of advance tax paid).

Being a salaried person rids you off the worries as the accounts department of your office already deducts advance tax from your salary as and when needed. On the contrary if you are a non-salaried individual, then you must not miss the advance tax payment deadline to avoid a penalty of 1% per month for non-compliance.

“In view of the recent disturbances in the North Eastern region of India, CBDT has decided to extend the date for payment of 3rd instalment of Advance Tax for FY (financial year) 2019-20 from 15th December, 2019 to 31st December, 2019 for the North Eastern Region,” the Central Board of Direct Taxes (CBDT) said in a statement.

This is a welcome gesture from the CBDT so as to not put undue pressure on citizens and to ensure that the government collects revenue from all taxpayers.

Our tax experts are always at hand if you need assistance with filing your income tax return!

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