Avoid interest penalties by mastering how and when to pay your advance tax.
Advance tax is the 'pay-as-you-earn' system of paying income tax in instalments throughout the year, rather than as a lump sum at year-end. Missing instalments triggers interest under Sections 234B and 234C, so understanding the rules is essential.
Who needs to pay?
Any taxpayer — individual, professional or business — whose total tax liability for the year is ₹10,000 or more after TDS must pay advance tax. Senior citizens without business income are exempt.
The four instalment deadlines
Advance tax is generally due in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Each instalment is cumulative.
How to estimate your liability
Project your annual income, apply the relevant slab rates, subtract eligible deductions and TDS already deducted, and pay the balance in instalments. Revise your estimate during the year if income changes.
Avoid the interest trap
Underpaying or paying late attracts interest. Our advisors can calculate your advance tax accurately each quarter so you stay penalty-free. Reach out for a quick review.
