Advance tax is the tax you pay in advance on your estimated income for the year. Instead of paying all your tax at the end of the financial year, you spread it across four quarterly installments. This helps you avoid the burden of a large tax payment and reduces the risk of interest penalties under Section 234B and 234C.
For FY 2025-26, if your tax liability exceeds ₹10,000 (after deducting TDS and advance tax already paid), you need to pay advance tax. The due dates are 15th June (15% of estimated tax), 15th September (45% cumulatively), 15th December (75% cumulatively), and 15th March (100% of the remaining tax). Missing these deadlines can result in interest charges at 1% per month.
Advance tax applies to various taxpayers including self-employed individuals, freelancers, business owners, senior citizens, and anyone with income other than salary. It's important to note that salaried employees with TDS deducted from their salary usually don't need to pay advance tax since their employer handles it. However, if you have additional income from business, capital gains, or other sources, you might still need to calculate and pay advance tax.
Calculating advance tax accurately is crucial to avoid penalties. Use our income tax calculator first to estimate your total tax liability for the year. Once you know your estimated tax, you can use our advance tax calculator to plan your quarterly payments and ensure you don't miss any deadlines.
The calculator also helps you understand interest calculations under Section 234B (for shortfall in advance tax payment) and Section 234C (for late or deficient installment payments). These interest charges can significantly increase your tax burden if you don't plan properly. Our calculator shows you exactly how much interest you'll be charged if you miss or delay any installment.
For business owners and freelancers, advance tax planning is especially important since you don't have an employer deducting TDS from your income. Missing advance tax payments can lead to notices from the Income Tax Department and additional interest charges. If you're also dealing with capital gains from property or stocks, consider using our capital gains tax calculator to understand how those gains affect your advance tax liability.
Need more detailed information about advance tax rules and regulations? Check out the official Income Tax Department's advance tax guide for complete information on due dates, payment methods, and interest calculations for FY 2025-26.
Choose your assessee type (Individual, Senior Citizen, Company, etc.) as advance tax thresholds may vary.
Select the current quarter (Q1, Q2, Q3, or Q4) to calculate the advance tax payable for that period.
Input your estimated taxable income, tax liability, advance tax paid till date, and TDS deducted.
Press "Calculate Advance Tax" to get instant results with detailed breakdown and quarterly schedule.
Check the summary cards, quarterly schedule, and charts to understand your advance tax obligations.
Use the quarterly schedule to plan your advance tax payments and avoid interest charges.
For Taxpayers:
For Businesses:
This calculator provides estimates based on current FY 2025-26 advance tax rules. For complex tax situations or multiple income sources, consult a tax professional. Always verify calculations with your CA or tax advisor before making payments.
• Applicable when advance tax paid is less than 90% of tax liability
• Interest rate: 1% per month
• Calculated from April 1st to March 31st
• On the shortfall amount
• Applicable when advance tax is not paid on due dates
• Interest rate: 1% per month
• Calculated for each quarter separately
• On the shortfall amount
| Assessee Type | Threshold Amount | Applicability |
|---|---|---|
| Individual (Below 60 years) | ₹10,000 | If tax liability exceeds threshold |
| Senior Citizen (60-80 years) | ₹10,000 | If tax liability exceeds threshold |
| Super Senior Citizen (80+ years) | ₹10,000 | If tax liability exceeds threshold |
| Company | ₹10,000 | Mandatory for all companies |
| Firm | ₹10,000 | If tax liability exceeds threshold |
| HUF | ₹10,000 | If tax liability exceeds threshold |
| Quarter | Period | Due Date | Percentage | Cumulative % |
|---|---|---|---|---|
| Q1 | April - June | 15th June | 15% | 15% |
| Q2 | July - September | 15th September | 30% | 45% |
| Q3 | October - December | 15th December | 30% | 75% |
| Q4 | January - March | 15th March | 25% | 100% |
• Applicability: When advance tax paid is less than 90% of tax liability
• Rate: 1% per month or part thereof
• Period: From April 1st to March 31st (12 months)
• Calculation: On shortfall amount
• Example: If shortfall is ₹50,000, interest = ₹50,000 × 1% × 12 = ₹6,000
• Applicability: When advance tax is not paid on due dates
• Rate: 1% per month or part thereof
• Period: From due date to actual payment date
• Calculation: On shortfall amount for each quarter
• Example: If ₹20,000 shortfall for 3 months = ₹20,000 × 1% × 3 = ₹600
• Net Banking: Through bank's internet banking
• Credit/Debit Card: Using cards on tax portal
• UPI: Through UPI-enabled apps
• NEFT/RTGS: Electronic fund transfer
• Advantage: Instant acknowledgment
• Challan 280: At designated bank branches
• Cash Payment: Up to ₹10,000 per transaction
• Cheque/DD: Through bank branches
• Processing Time: 2-3 working days
• Note: Keep payment receipts safely
| Event | Date | Description |
|---|---|---|
| Q1 Advance Tax | 15th June 2025 | First installment - 15% of estimated tax |
| Q2 Advance Tax | 15th September 2025 | Second installment - 45% cumulative |
| Q3 Advance Tax | 15th December 2025 | Third installment - 75% cumulative |
| Q4 Advance Tax | 15th March 2026 | Final installment - 100% of tax liability |
| ITR Filing | 31st July 2026 | Due date for filing income tax return |
Any person whose estimated tax liability for the year exceeds ₹10,000 is liable to pay advance tax. This includes individuals, companies, firms, and HUFs. Senior citizens and super senior citizens are also subject to the same threshold.
Advance tax is payable in four installments: 15th June (15%), 15th September (45%), 15th December (75%), and 15th March (100%). These dates are fixed and cannot be extended.
If you don't pay advance tax or pay less than required, you may be liable to pay interest under Section 234B (1% per month on shortfall) and Section 234C (1% per month for deferment of payments).
Yes, you can revise your advance tax estimates during the year based on your actual income. However, interest may still be applicable on any shortfall from the original estimates.
Companies are required to pay advance tax if their tax liability exceeds ₹10,000. The calculation is based on estimated taxable income and applicable tax rates for the financial year.
TDS deducted during the year is considered as advance tax paid. You need to pay advance tax only on the balance amount after considering TDS already deducted.
Yes, you can pay advance tax before the due dates. Early payment helps avoid interest charges and provides better cash flow management.
You need your PAN number, bank account details, and estimated tax liability. For online payment, you'll need internet banking or UPI access. For offline payment, you'll need Challan 280.
For online payments, you'll receive instant acknowledgment. For offline payments, you'll get a receipt from the bank. Keep these acknowledgments for your records and ITR filing.
If you overpay advance tax, the excess amount will be refunded after filing your ITR. You can also adjust the excess against future tax liabilities.
With proper advance tax planning, you can avoid interest under Sections 234B and 234C and stay compliant with tax laws. Use this calculator to estimate your advance tax liability for each quarter and pay on time to avoid penalties.