Selling property? Know your tax timelines

I have an apartment that I want to sell. If I sell it before March 31, 2025, will I have to pay the entire capital gains tax as advance tax by the same date? My reservation is that the buyer will pay me in two installments, so I will not have enough money to pay the full tax before the end of this financial year. If I sell the property in April 2025 instead, I will get time till June 15, 2025, to pay advance tax. Is that correct? —Name withheld on request

- Parizad Sirwalla

It is assumed that you wish to sell an apartment in March 2025, for which payments will be received in two tranches spread across separate financial years, that is, one in March 2025 (FY25) and the balance in FY26. It is also assumed that you are below 60 years of age, and hence, the advance tax provisions are fully applicable to you under India's income tax regulations.

According to the tax laws, a taxpayer is required to pay advance tax if the tax payable (after taking into account the tax deducted/collected at source) for a given FY exceeds ₹10,000. Advance taxes must be paid as per the prescribed installments outlined below during the FY:

• On or before 15th June: Up to 15% of tax payable

• On or before 15 September: Up to 45% of tax payable

• On or before 15 December: Up to 75% of tax payable