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Pay Your Estimated Advance Tax During the Year

Advance Tax is income tax paid during the financial/tax year in instalments instead of paying the entire tax liability at the end of the year. It is commonly relevant when a taxpayer has income from sources where sufficient TDS/TCS is not deducted.

For individuals, advance tax may become applicable where the estimated tax payable for the year is ₹10,000 or more, after considering applicable tax credits. Paying on time helps avoid interest under Sections 234B / 234C (and corresponding provisions under the Income Tax Act, 2025).

Tax Calculation

Instalment Planning

TDS/TCS Adjustment

Payment Assistance

Reconciliation

ITR Tax Review

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Overview

What Is Advance Tax & Why It Matters?

Advance Tax means paying your estimated income tax liability during the year in which the income is earned — instead of waiting until the end of the year. The purpose is to distribute the tax payment throughout the year rather than requiring the taxpayer to pay the entire amount at one time.

Pay During the Year

Income is earned → Estimate tax liability → Pay advance tax in instalments → File Income Tax Return → Adjust final tax liability.

Threshold of ₹10,000

Advance tax becomes payable where the amount of tax payable under the applicable advance-tax provisions is ₹10,000 or more. This threshold remains unchanged under the Income Tax Act, 2025.

Avoid Interest & Cash-Flow Pressure

Failure to pay required advance tax can result in interest liability (Sections 234B / 234C or corresponding 2025 Act provisions), year-end cash-flow pressure and difficulty while finalising the return.

Documents and tax calculation representing Advance Tax planning

Advance TaxPayment & Planning

What We Help You With

Complete Advance Tax support — from estimation to payment and reconciliation.

Advance Tax Calculation

Estimate total income, taxable income, tax liability and remaining payable after TDS/TCS.

Instalment Planning

Calculate 15% / 45% / 75% / 100% cumulative targets for the four due dates.

TDS / TCS Adjustment

Factor in all available tax credits before determining the net advance-tax liability.

Advance Tax

Calculation
& Payment Support

Payment Assistance

Guidance on challan generation, payment modes and verification of CIN / payment status.

Reconciliation

Match advance-tax payments with Form 26AS, AIS and challan records before filing.

ITR Tax Review

Ensure advance tax is correctly reflected in the final tax computation of the return.

Our Services

Advance Tax Services

Choose the calculation, planning or reconciliation service relevant to your requirement.

CALC

Advance Tax Calculation

Estimate total income, taxable income, tax liability and remaining payable after considering TDS, TCS and other credits.

INST

Instalment Calculation

Compute the 15% / 45% / 75% / 100% cumulative amounts due on 15 June, 15 September, 15 December and 15 March.

PAY

Payment Assistance

Guidance on generating the challan, selecting the correct tax type, payment modes and retaining CIN / receipt details.

TDS

TDS / TCS Adjustment

Factor in all available tax credits so that only the net remaining liability is considered for advance tax.

REC

Payment Reconciliation

Compare advance-tax challans with Form 26AS, AIS and tax payment history before filing the return.

ITR

ITR Tax Reconciliation

Ensure advance tax paid is correctly reflected in the final tax computation and any refund or payable is accurate.

Who Needs Advance Tax

Who Should Pay Advance Tax?

Advance tax can apply to taxpayers whose estimated tax payable for the year reaches the prescribed threshold. It is commonly relevant for:

Business Owners & Proprietors Professionals & Freelancers Partnership Firms & LLPs Companies Investors & Capital Gains Earners Landlords (Rental Income) Interest & Dividend Earners Salaried with Additional Income Non-Residents

The exact liability depends on the taxpayer's income, applicable tax provisions, TDS/TCS and other available tax credits.

Clear Expectations

Who May Not Need to Pay Advance Tax?

A taxpayer may not have an advance-tax liability if the estimated tax payable after considering applicable tax credits is below the prescribed threshold of ₹10,000.

Most salaried employees whose entire tax is covered by employer TDS

Taxpayers whose remaining tax after TDS/TCS is below ₹10,000

Persons with only exempt or non-taxable income

Cases where total tax liability itself is less than the threshold

However, salaried employees can still have advance-tax liability if they have significant additional income (interest, rent, capital gains, etc.) and the resulting tax payable after TDS is ₹10,000 or more.

Payment Schedule

Advance Tax Instalments

For individuals under the standard advance-tax instalment system, the cumulative payment schedule is as follows.

Due Date	Cumulative Advance Tax	What It Means
On or before 15 June	15%	At least 15% of estimated advance-tax liability
On or before 15 September	45%	At least 45% cumulative (including June payment)
On or before 15 December	75%	At least 75% cumulative (including earlier payments)
On or before 15 March	100%	Full estimated advance-tax liability

These are cumulative percentages, not separate percentages of the total tax at each instalment. Special rules apply to presumptive taxation (generally 100% by 15 March).

Calculation Journey

How Advance Tax Calculation Works

From estimating income to paying the correct instalments and reconciling before filing.

Estimate Total Income

Salary, business, professional, interest, rent, capital gains and other income.

Calculate Tax Liability

Apply applicable tax regime, deductions, rebates and reliefs.

Reduce TDS / TCS

Subtract eligible tax credits to arrive at net advance-tax payable.

Apply Instalment Schedule

Determine amounts due on each of the four due dates.

Pay & Save Challan

Generate challan, pay via available modes and retain CIN / receipt.

Reconcile Before ITR

Match payments with Form 26AS, AIS and tax records.

The Payment Process

How We Help You Pay Advance Tax

From estimating liability to a reconciled, ITR-ready position.

Estimate Income & Tax

We help estimate total income, taxable income and tax liability under the applicable regime.

Adjust TDS / TCS

Available tax credits are deducted to arrive at the net advance-tax amount.

Plan & Pay Instalments

Instalment amounts are calculated and payment guidance is provided for each due date.

Reconcile for ITR

Payments are matched with Form 26AS / AIS and carried into the return computation.

Documents & Information

What You Should Keep Ready

The exact records required depend on the taxpayer category. Commonly relevant items include:

PAN & Previous ITR

Form 26AS & AIS

Form 16 / Form 16A

Bank & Interest Certificates

Business / GST Records

Capital Gain / Investment Statements

Document requirements vary by taxpayer type — a salaried employee mainly needs Form 16, salary slips and interest certificates, while a business should also keep books of accounts, sales register and GST returns ready alongside Form 26AS and AIS.

Clear Distinction

Advance Tax vs Self-Assessment Tax

Different in timing and purpose — both are important for complete tax compliance.

Aspect	Advance Tax	Self-Assessment Tax
When Paid	During the financial / tax year	Generally while finalising the return
Basis	Estimated tax liability	Final tax computation
Payment Style	In instalments (where applicable)	For remaining tax liability
Purpose	Meet tax liability during the year	Settle balance tax before / at filing
Interest Provisions	Subject to advance-tax interest rules	Part of final return tax payment

Advance tax is paid during the year based on estimated liability; Self-Assessment Tax is generally paid when finalising the return for any remaining liability after TDS, TCS and advance tax.

What You Receive

After Your Advance Tax Review

The exact deliverables depend on the selected service.

Estimated Tax Calculation Advance-Tax Liability Instalment-Wise Calculation TDS / TCS Adjustment Tax Payment Guidance Payment Reconciliation Form 26AS / AIS Verification ITR Tax Reconciliation

Once calculated and paid, we can continue to support ITR preparation using your verified advance-tax information.

Important Legal Disclaimer

Advance Tax liability, calculation, instalments, payment dates, interest, presumptive-taxation provisions, tax credits and related compliance are subject to the applicable Income-tax Act, Rules, notifications, circulars and Income Tax Department procedures for the relevant tax year.

The applicable legal framework can differ depending on the tax year. The Income Tax Department has stated that the Income Tax Act, 2025 does not introduce a policy change in the advance-tax provisions, including the ₹10,000 threshold and general instalment structure.

The advance-tax amount shown on this page is for general informational purposes. Actual tax liability should be calculated using the taxpayer's complete income, applicable tax regime, deductions, rebates, TDS/TCS and other relevant provisions. This page provides general information and does not constitute case-specific tax, legal or financial advice.

FAQs

Frequently Asked Questions

Clear answers before you calculate or pay Advance Tax.

Advance Tax is income tax paid during the year based on estimated tax liability instead of paying the entire amount after the year ends.

Taxpayers whose estimated tax payable reaches the prescribed threshold (₹10,000 or more) may need to pay advance tax. This commonly includes business owners, professionals, freelancers, investors and salaried persons with significant additional income.

The current threshold is ₹10,000 or more of tax payable under the applicable advance-tax provisions. The Income Tax Department confirms that this threshold remains unchanged under the Income Tax Act, 2025.

The standard individual instalment dates are 15 June (15%), 15 September (45%), 15 December (75%) and 15 March (100%). These are cumulative percentages.

Usually, employer TDS covers salary tax. However, an employee with significant additional income (interest, rent, capital gains, etc.) may have an advance-tax liability if sufficient TDS is not available.

Interest may apply under the applicable provisions for default or deferment (Section 234B / 234C under the 1961 Act, or corresponding Sections 424 / 425 under the Income Tax Act, 2025). The interest rate is generally 1% per month or part of a month for the specified period.

Yes. Taxpayers under presumptive taxation (e.g., Sections 44AD / 44ADA) are generally required to pay the entire advance-tax liability in a single instalment on or before 15 March of the relevant financial year.

Yes. The Income Tax Department provides online tax-payment facilities. Available modes can include Net Banking, Debit Card, RTGS/NEFT, Payment Gateway, Bank Counter and UPI where available.

The Income Tax Department currently states that payment should generally be made within 15 days of CRN generation, or for Advance Tax, within 15 days or before 31 March, whichever is earlier.

If total taxes paid (including advance tax) exceed the final tax liability, the excess may become refundable after filing and processing the Income Tax Return, subject to applicable rules.

Advance Tax is paid directly by the taxpayer based on estimated liability. TDS is deducted by the payer under applicable TDS provisions at the time of specified payments.

Yes. If income changes (for example due to capital gains, bonus or unexpected receipts), the taxpayer should reassess the expected tax liability before the next applicable instalment and adjust subsequent payments.

Pay Your Advance Tax on Time

Estimate liability, plan instalments and avoid interest — before the due dates arrive.

Estimate Income → Calculate Tax → Adjust TDS/TCS → Plan Instalments → Pay → Reconcile → File ITR

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