Income Tax Return Deadline Clashes with Advance Tax Payment: What Taxpayers Need to Know
The Income Tax Department has set 15 september 2025 as a crucial deadline for two major compliance requirements: filing Income Tax Returns (ITR) and paying the second installment of advance tax for FY 2025-26. This overlap is creating challenges for many taxpayers and chartered accountants.
Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
1. Why the Deadline Clash Matters
· Both tasks are time-sensitive and mandatory· Taxpayers must calculate liability accurately for both ITR filing and advance tax· Overlapping deadlines can lead to delays, mistakes, or penalties2. Understanding Advance Tax
· Advance tax is a mechanism to pay income tax in installments rather than a lump sum at year-end· For FY 2025-26, the second installment is due by 15 september 2025· Applicable to salaried, freelancers, and business income earners with tax liability exceeding ₹10,000 per year3. Challenges Faced by Taxpayers
1. Calculating Tax Accurately: Need to account for all sources of income, deductions, and exemptions2. Cash Flow Management: Paying advance tax while also managing household or business expenses3. ITR Preparation Stress: Gathering documents, reconciling TDS, and claiming deductions4. Risk of Penalties: Late payment of advance tax attracts interest under Section 234B and 234C4. Tips to Manage Both Deadlines
· Start Early: Calculate estimated tax liability well in advance· Use Online Tools: Income Tax Department’s portal and accounting software can help· Consult a CA: Especially for complex income or business returns· Pay Advance Tax First: Ensure interest penalties are avoided, then file ITR· Double-Check Documents: TDS, Form 26AS, and investment proofs5. Consequences of Missing Deadlines
· Penalties and Interest: For late ITR filing or delayed advance tax payment· Delayed Refunds: Any eligible refunds may be processed slowly· Legal Notices: Non-compliance can trigger scrutiny from the Income Tax Department6. Final Advice
Taxpayers should plan ahead and allocate sufficient time to manage both obligations. Early action reduces stress, ensures compliance, and prevents avoidable penalties.Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.