Advance tax ensures collection of income tax during the financial year rather than only at return filing. Sections 207–211 require taxpayers with estimated liability above ₹10,000 after TDS/TCS to pay instalments on due dates.
Underestimation attracts interest under Sections 234B and 234C. Corporates and taxpayers opting into presumptive schemes face different instalment schedules.
This article sets out due dates, calculation approach, and interest mechanics.
Who must pay
- Tax liability after reducing TDS/TCS/TCs exceeds ₹10,000 for the year.
- Residents aged 60+ without business income are exempt from advance tax obligation.
- Assessees under 44AD/44ADA may pay entire advance tax by 15 March (single instalment) if conditions met.
Due dates — non-corporate taxpayers
| Due date | Cumulative % of annual tax |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
Due dates — companies
| Due date | Cumulative % |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
Companies may have additional criteria under the Income-tax Rules for instalment basis on book profits — verify for MAT and dividend taxation cash flows.
Estimating advance tax
- Project total income — salary, business, capital gains, house property, other sources.
- Deduct eligible Chapter VI-A deductions and basic exemption.
- Apply slab rates plus surcharge and cess; reduce TDS/TCS credits.
- Pay challan 280 with type “100” advance tax before each due date.
- Revise estimates quarterly if large capital gains or bonus received.
Interest for default
Section 234B
If advance tax paid is less than 90% of assessed tax, interest at 1% per month (or part) on shortfall from 1 April of assessment year to date of determination of tax.
Section 234C
Deferment of instalments — interest on shortfall in each instalment period at 1% per month for three months (15% in last instalment).
Practical tips
- Use income-tax portal “Advance tax calculator” and AIS for TDS already deducted.
- Coordinate with employer for accurate Form 16 vs other income.
- Pay before 15 March to avoid last-minute portal congestion.
General professional information only. Due dates and rates may be extended by notification; verify for your financial year.