Advance Tax Calculator
Determine your quarterly advance tax liabilities with precise due dates
Advance tax is the income tax payable if your estimated tax liability exceeds ₹10,000 in a financial year. It is paid in installments during the year rather than as a lump sum at year-end. This calculator helps you determine your quarterly advance tax obligations and due dates, helping you avoid interest penalties under Section 234B and 234C.
New Tax Regime
- Up to ₹3,00,000: Nil
- ₹3,00,001 to ₹6,00,000: 5%
- ₹6,00,001 to ₹9,00,000: 10%
- ₹9,00,001 to ₹12,00,000: 15%
- ₹12,00,001 to ₹15,00,000: 20%
- Above ₹15,00,000: 30%
- Rebate u/s 87A: Up to ₹25,000 for income up to ₹7,00,000
Old Tax Regime
- Up to ₹2,50,000: Nil (₹3,00,000 for Senior Citizens, ₹5,00,000 for Super Senior Citizens)
- ₹2,50,001 to ₹5,00,000: 5%
- ₹5,00,001 to ₹10,00,000: 20%
- Above ₹10,00,000: 30%
- Rebate u/s 87A: Up to ₹12,500 for income up to ₹5,00,000
- Standard Deduction: ₹50,000
Advance Tax Schedule
Total Tax Liability
Total Income
Net Taxable Income
TDS Credit
Net Advance Tax Payable
| Installment | Due Date | Percentage | Amount Payable | Cumulative |
|---|
Important Notes
- Advance tax is mandatory if your tax liability exceeds ₹10,000 in a financial year
- Missing advance tax deadlines can lead to interest penalties under Section 234B & 234C
- Senior citizens (60 years and above) without business income are exempt from advance tax
- Ensure timely payment to avoid interest charges at 1% per month
Disclaimer: This calculator provides an estimate based on current tax laws. For precise tax planning, please consult a tax professional.
How Your Tax Was Calculated
Advance Tax Guide & Tutorial
Understanding Advance Tax in India
Advance tax is income tax paid in advance rather than as a lump sum at the end of the fiscal year. It's a way for the government to ensure steady tax inflow throughout the year. The Income Tax Act mandates advance tax payment if your estimated tax liability for the financial year exceeds ₹10,000.
Understanding advance tax obligations is essential for every Indian taxpayer. Our Advance Tax Calculator is designed to simplify this process for you.
If your estimated tax liability exceeds ₹10,000 in a financial year, the Income Tax Department requires you to pay your taxes in quarterly installments rather than as a single payment at year-end. These installments are due on specific dates (15th June, 15th September, 15th December, and 15th March) with prescribed percentages of your total tax liability.
Our calculator helps you determine exactly how much to pay by each deadline. Simply enter your expected income from all sources and applicable deductions. The calculator will process this information according to the latest tax slabs and provide you with the precise amounts due for each quarter.
The Income Tax Department clearly states: "Advance tax is the income tax payable if your tax liability is ₹10,000 or more in a financial year."
You can verify the official guidelines regarding advance tax on the Income Tax Department's website.
By using our Advance Tax Calculator, you can ensure timely compliance and avoid interest penalties under Sections 234B and 234C of the Income Tax Act.
Who Needs to Pay Advance Tax
All taxpayers including individuals, HUFs, companies, and firms whose estimated tax liability exceeds ₹10,000 in a financial year must pay advance tax. However, senior citizens (60 years and above) without business income are exempt.
Consequences of Non-Payment
Failure to pay advance tax or delay in payment attracts interest penalties under Sections 234B and 234C of the Income Tax Act, at 1% per month of the shortfall amount.
Advance Tax Due Dates and Installments
| Due Date | For Individuals | For Companies |
|---|---|---|
| June 15 | 15% of total tax liability | 15% of total tax liability |
| September 15 | 45% of total tax liability | 45% of total tax liability |
| December 15 | 75% of total tax liability | 75% of total tax liability |
| March 15 | 100% of total tax liability | 100% of total tax liability |
How to Calculate and Pay Advance Tax: Step-by-Step
Estimate Your Annual Income
Calculate your expected income from all sources (salary, business, investments, property, etc.) for the entire financial year.
Determine Eligible Deductions
Calculate all the eligible deductions under various sections of the Income Tax Act (80C, 80D, etc.).
Calculate Taxable Income
Subtract the deductions from your gross income to determine your estimated taxable income.
Compute Tax Liability
Apply the appropriate tax rates to your taxable income, add applicable surcharge and education cess.
Deduct TDS/TCS Credits
Subtract any TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) from your total tax liability.
Pay Your Advance Tax
Pay the required percentage of your net tax liability by the specified due dates using Challan 280.
Income Distribution Patterns and Advance Tax
Common Income Distribution Patterns
- Equal Distribution: Income is earned evenly throughout the year (typical for salaried individuals)
- Increasing Pattern: Income grows through the year (common for businesses with seasonal peak at year-end)
- Decreasing Pattern: Higher income in early quarters, reducing later (seasonal businesses with early peaks)
- Fluctuating Pattern: Varies significantly quarter to quarter (freelancers, commission-based roles)
- Lump Sum: Major income in specific months (capital gains, one-time bonuses)
Impact on Advance Tax Calculation
Section 234C interest for deferment of advance tax is calculated based on shortfall in each quarter. Understanding your income pattern helps in accurate advance tax planning:
- Interest is calculated only on the shortfall amount for each installment
- For variable income patterns, you can adjust your advance tax payments accordingly
- If you earn a significant amount in later quarters, you can pay higher proportions in later installments
- Capital gains realized later in the year can be considered for the installment due after such realization
Frequently Asked Questions
No, advance tax is required only when your estimated tax liability (after TDS) exceeds ₹10,000 in a financial year. Additionally, senior citizens (60 years and above) who don't have income from business or profession are exempt from paying advance tax.
If you miss an advance tax installment or pay less than the required amount, you'll be liable to pay interest under:
- Section 234C: For deferment of advance tax (1% per month on the shortfall amount for each quarter)
- Section 234B: For default in payment of advance tax (1% per month if advance tax paid is less than 90% of the assessed tax)
It's important to note that this interest is non-waivable and will be charged even if you pay your entire tax liability by March 31st.
You can pay advance tax through the following methods:
- Online Payment: Through the Income Tax e-payment portal (www.incometaxindiaefiling.gov.in)
- Net Banking: Using the tax payment facility in your net banking account
- NEFT/RTGS: Using the NEFT/RTGS facility of your bank
- Offline Mode: By depositing Challan 280 at authorized banks
When making the payment, ensure you select the correct assessment year and tax type (advance tax - 100).
If your income changes (increases or decreases) during the financial year, you should recalculate your tax liability and adjust your future advance tax installments accordingly. The advance tax system is flexible and allows you to pay based on your most recent income estimates.
In case of certain income types like capital gains, lottery winnings, or unexpected income, you can pay the advance tax in the quarter in which such income is earned without attracting interest under section 234C.
Yes, advance tax can be revised at any time. If you've underestimated your income and tax liability, you can pay additional amounts in subsequent installments. Similarly, if you've overestimated, you can reduce future installments. However, interest under Section 234C will apply for any shortfall in the previous installments, even if you compensate in later ones.