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Advance Tax Payment: Due Dates, Calculator, Applicability, Procedure, Installment Details

By Ektha Surana

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Updated on: Jun 26th, 2024

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4 min read

Advance tax is a tax payable by individuals on income sources beyond their regular salary, including earnings from rent, capital gains, lottery earnings, fixed deposits and more. Payments can done online or through specified banks.

Advance Tax Calculator – Calculate Advance Tax Liability

Use this intuitive tool from Cleartax to calculate your advance tax liability:

The due date for the First instalment of advance tax is 15th June 2024 for FY 2024-25.

What is Advance Tax?

Advance tax is the income tax that is paid in advance instead of lump sum payment at the end of the financial year. It is the tax that you pay as you earn. These payments have to be made in instalments as per due dates provided by the income tax department.  

Who Should Pay Advance Tax?

Salaried individuals, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. The advance tax applies to all taxpayers, salaried individuals, freelancers, and businesses.

Senior citizens– People aged 60 years or more who do not run a business are exempt from paying advance tax. So, only senior citizens (60 years or more) having business income must pay advance tax.

Presumptive income for businesses–The taxpayers who have opted for the presumptive taxation scheme under section 44AD have to pay the whole amount of their advance tax in one instalment on or before 15th March. They also have the option to pay all of their tax dues by 31st March.

Presumptive income for professionals– Independent professionals such as doctors, lawyers, architects, etc. come under the presumptive scheme under section 44ADA. They have to pay the whole of their advance tax liability in one instalment on or before 15th March. They can also pay the entire amount by 31st March.

Read in detail about presumptive taxation here Want a CA to calculate and help pay your advance tax dues?

Advance Tax Due Dates For FY 2024-25

FY 2024-25 for both individual and corporate taxpayers

Due DateAdvance Tax Payment Percentage
On or before 15th June15% of advance tax
On or before 15th September45% of advance tax (-) advance tax already paid
On or before 15th December75% of advance tax (-) advance tax already paid
On or before 15th March100% of advance tax (-) advance tax already paid

For taxpayers who have opted for Presumptive Taxation Scheme under sections 44AD & 44ADA – Business Income

Due DateAdvance Tax Payment Percentage
 On or before 15th March100% of advance tax

How to Pay Advance Tax Online?

1. Visit the e-filing portal of the Income Tax Department of India

2. On the left side of the home page, there is a 'Quick Links' section, click on the 'e-Pay Tax' option. You can also search for 'e-Pay Tax' in the search bar.

e-filing portal

3. On this page, enter your PAN and re-enter to confirm it. Then, enter your mobile number and click on ‘Continue’.

enter your PAN & mobile number

4. Now enter the 6-digit OTP received on your mobile number and 'Continue'.

enter the 6-digit OTP

5. Select the first box labelled as ‘Income Tax’ and click on ‘Proceed’

6. Select the ‘Assessment Year’ as 2025-26 and ‘Type of Payment’ as ‘Advance Tax (100)’ and click on 'Continue'.

Select the Assessment Year

7. Enter all the tax details

Enter the tax details

8. Select the payment method and the bank and press 'Continue'.

Select the payment method

9. Preview the challan details and click on ‘Pay Now’. You may also ‘Edit’ these details if required.

Preview the challan details and click on Pay Now

10. After completing the payment, you will get an acknowledgement on the next screen. You can see the BSR code and challan serial number on the right side of the challan. Save a copy of this tax receipt for future reference. You will need to enter the BSR code and challan number in your tax return.

What is Advance Tax Late Payment Interest? 

Interest on advance tax:  
1. Non-payment of advance tax will attract interest under 234B: As per Section 234B, you must pay at least 90% of the total taxes as advance tax or TDS/TCS by 31st March. Failure to make advance tax payments will result in an interest @ 1% on the unpaid amount.

2. Delay in payment of advance tax will attract interest under 234C:

ParticularsRate of InterestPeriod of InterestAmount on which interest is calculated
If Advance Tax paid by 15th June is less than 15%1% per month3 months15% of Amount* (-) tax paid before June 15
If Advance Tax paid by 15th September is less than 45% 1% per month3 months45% of Amount* (-) tax paid before September 15
If Advance Tax paid by 15th December is less than 75% 1% per month3 months75% of Amount* (-) tax paid before December 15
If Advance Tax paid by 15th March is less than 100%1% per month1 month100% of Amount* (-) tax paid before March 15

How Advance Tax Payment Calculated?

Below are the steps to compute your advance tax liability:

Step 1: Estimate your total income for the financial year from the various sources including capital gains, rental income, professional income, income from fixed deposits, salary and any other sources.

Step 2: From the gross receipts, reduce various deductions under section 80C, 80D, etc.

Step 3: Compute the tax payable on the basis of the current tax slab rates.

Step 4: Subtract any Tax Deducted at Source (TDS) that has already been deducted or is expected to be deducted based on the TDS rates.

If your tax liability after deducting TDS exceeds 10,000, you must pay the advance tax.


Example for Advance Tax Calculation

Let's understand the calculation with the help of an example. Ajay is a freelancer earning income from the profession of interior decoration. For the FY 2024-25, Ajay estimates his annual gross receipts at Rs 20,00,000. Ajay estimates his expenses at Rs 12,00,000. Ajay has deposited Rs 40,000 in PPF account. Ajay has also paid Rs 25,000 towards the LIC premium. Further, Ajay has paid Rs 12,000 towards the medical insurance premiums. Professional receipts of Ajay are subject to TDS. Ajay estimates a TDS of Rs 30,000 on certain professional receipts for the FY 2024-25. Besides professional receipts, Ajay estimates an interest of Rs 10,000 on fixed deposits held by him. Ajay’s advance tax liability would be as below:

INCOME ESTIMATION FOR ADVANCE TAXAMOUNT (Rs)AMOUNT (Rs)
Income from profession:  
Gross receipts20,00,000 
Less: Expenses12,00,0008,00,000
   
Income from other sources:  
Interest from fixed deposit 10,000
GROSS TOTAL INCOME 8,10,000
Less: Deduction under section 80C  
Contribution to PPF40,000 
LIC premium25,000 
 65,000 
Deduction under section 80D12,00077,000
TOTAL INCOME 7,33,000
   
TAX PAYABLE 59,100
Add: Education cess @ 4% 2,364
  61,464
Less: TDS 30,000

TAX PAYABLE IN ADVANCE

(as it exceeds Rs.10,000)

 31,464
ADVANCE TAX PAYMENTS
Due dateAdvance tax payableAmount (Rs)
15th June15% of Advance tax4,700
15th September45% of Advance tax9,400 (14,100-4700)
15th December75% of Advance tax9,400 (23500-14100)
15th March100% of Advance tax7900 (31,400-23500)

Note: 

1. The above example of tax liability is calculated under the old tax regime since deductions under section 80C are beneficial to the assessee & the said section is available only in the case of the old tax regime. 

2. In the above case, the assessee is not liable to pay any advance if the net tax liability is not more than Rs.10,000, although the tax liability before deducting TDS and advance exceeds Rs 10,000.

Tax payable/Tax Refundable

Advance tax is the payment of tax during the financial year in 4 instalments based on the estimated income for the year to avoid lump sum tax payment at the year end. If there is a shortage/excess of tax payment after adjusting advance tax, tax deducted at source & tax collected at source, the assessee would arrive at the tax payable or tax refundable, respectively. 

Other Articles:
1. ITR Filing Last Date 
2. What is Self Assessment Tax

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Frequently Asked Questions

When should I pay advance tax?

If your tax liability for a year after reducing TDS exceeds Rs 10,000, you will be liable for payment of advance tax.

I have made a mistake in Advance tax challan. How can I rectify the mistake made in Advance tax payment?

Do not worry! You can now correct it easily. The Income Tax Department has recently launched online challan correction feature, where you can make changes to:

  • assessment year, 
  • major head and 
  • minor head [100 (Advance tax), 300 (self-assessment tax), and 400 (demand payment as regular assessment tax)]

Changes to the assessment year must be made within 7 days of payment and changes to major head and minor head can be made within 30 days of payment.

How to use challan correction feature?

Follow these steps to make corrections to tax challan:

  • Log in to the e-filing ITR portal
  • Select “Challan Correction” from the services tab
  • Click on "Create Challan Correction Request" on the webpage
  • Choose the correction type: 
    • assessment year
    • major head
    • minor head 
  • Enter either the Assessment Year or Challan Identification Number (CIN)
  • Depending on your choice, view either specific CIN details or a list of challans for the chosen Assessment Year. Choose the relevant challan for correction.
  • Input the correct information
  • Verify the correction using Aadhaar OTP, Digital Signature Certificate (DSC), or Electronic Verification Code (EVC) through net-banking, Demat, or bank account.
  • Once the correction is successfully verified, you will receive a success message along with a transaction ID. Keep the transaction ID for tracking the status of your correction request.
Is an NRI liable for payment of advance tax?

An NRI, who has an income accruing in India in excess of Rs 10,000, is liable for payment of advance tax.

I am a senior citizen with pension and interest income. Should I pay advance tax?

Resident senior citizens not having income from business or profession are not liable for advance tax.

Will I be penalised if I do not pay advance tax?

Non-payment of advance tax will result in levy of interest under 234B and 234C of the Income-tax Act, 1961.

Can I claim deductions under 80C while estimating income for determining my advance tax?

Yes. You can consider all these deductions while estimating your income for the year for computing your advance tax liability.

What happens if I miss the deadline for payment of the fourth instalment of my advance tax i.e. on 15 March?

You can still go ahead with payment of advance tax on or before the 31 March of the year. Such payment will still be treated as advance tax only.

How do I make an advance tax payment?

Advance tax payment is made using Challan 280, just like any other regular tax payment. You may read our detailed article on online payment of income tax.

Why should advance tax payments be made?

Advance tax payments benefit both the government and the individual/organisation paying it. From the government’s perspective, it provides a continuous flow of income throughout the year. From the individual/organisation’s perspective, it reduces the year-end burden of paying taxes in a lump sum. Non-payment of advance tax could result in the taxpayer being liable to interest under the Income Tax law. Hence, timely payments of advance tax should be made.

How to check advance tax payment status?

To check the status of your advance tax payment challan, go to https://tin.tin.nsdl.com/oltas/index.html. Select CIN (Challan Identification Number) Based View. Then enter the required details being asked for, in order to view the status. You can also check the list of advance tax payments made by logging in to your income tax account at https://www.incometaxindiaefiling.gov.in/home and going to My account -> View Form 26AS (Tax Credit), and entering the financial year and type of view/download.

How to write a cheque for advance tax payment?

Taxpayers can pay advance tax both online and offline. For offline payments, the challan can be downloaded at https://www.incometaxindia.gov.in/Forms/107010000000345598.pdf Once downloaded, the details listed should be filled up, keeping in mind the following instructions-

  • A separate challan should be used for each type of payment.
  • Quoting the Permanent Account Number (PAN) is mandatory. Quoting a false PAN may attract a penalty of Rs. 10,000 as per section 272B of the Income Tax Act, 1961.
  • Taxpayers should draw/issue the cheque/DDs towards payment of income tax as under –    
    Pay _________________ (Name of the bank where the Challan is being deposited) A/c Income-tax.
  • Taxpayers should ensure that the bank’s acknowledgement contains the (1) BSR code of the bank branch, (2) the Date of deposit of challan, and (3) the Challan serial number, as these details will have to be quoted in the Income Tax Return.
How to download the advance income tax challan?

To view the advance tax payment challan, go to https://tin.tin.nsdl.com/oltas/index.html. Select CIN (Challan Identification Number) Based View. Enter the required details, and click on ‘View’. Once the challan details are displayed on the screen, you can either print out the same or save a screenshot. Taxpayers can also download the advance tax payment receipt/challan by visiting the website of the bank through which the advance tax payment was made. An option will be available to download the advance payment receipt.

How to pay advance tax online on ClearTax?

Use the advance tax calculator by ClearTax to simplify your advance tax calculations and click on the ‘Pay on Government Website’ button to make the payment. To know the detailed steps, watch this video.

Can I pay advance tax after the due date?

You must pay advance tax before the financial year ends in 4 instalments: 15th June, 15th September, 15th December and 15th March. If advance tax is not paid according to this schedule, then 1% monthly interest will be levied.

How to pay advance tax for capital gains?

You must pay advance tax on Capital gains. However, it is not possible to accurately predict the amount of capital gain in advance. Therefore, if you earn capital gains after the advance tax due date, you may choose to pay the advance tax in the remaining instalments.

How to pay advance tax through SBI?

Use the advance tax calculator to calculate your exact tax amount and click on the ‘Pay on Government Website’ button > Select ‘challan 280’ > Fill up all the details (watch this video for complete details) > Under net banking, select ‘SBI’ and make the payment.

How to pay advance tax online through HDFC Bank?

To pay advance tax through HDFC bank, follow these steps:

  • Use the advance tax calculator to calculate your exact tax amount and click on the ‘Pay on Government Website’ button 
  • Select ‘challan 280’ 
  • Fill up all the details
  • Under net banking, select ‘HDFC’ and make the payment
How do you calculate advance tax?

Estimate your total income from all sources earned from 1st April- 31st March of the financial year for which you are doing the advance tax calculations. Subtract all eligible deductions and exemptions. Compute tax on such income as per the tax regime you opted for. Reduce the amount of tax paid by way of TDS/TCS. You get your advance tax liability (if the amount of tax calculated is more than Rs. 10,000).

How do we make advance tax payments for incomes which cannot be predicted?

Income from capital gains, income from lotteries & such other incomes cannot be estimated by assessee. Therefore, the assessee needs to pay tax on such income in the remaining instalments, or if no instalment is due, pay the tax late by 31st March to avoid interest.

What is the minimum amount of tax that is required to be paid as an advance tax by 31st March?

At least 90% of your total tax liability as per the estimated income is required to be paid by the assessee. Failing to which results in interest at the rate of 1% on the unpaid amount till the date of payment. 

How is the interest calculated for non-payment of advance tax within the due date?

Tax is calculated at the rate of 1% per month under section 234C. Let’s say if the tax paid is less than 15% of total tax liability by the 15th of June, then 1% per month for three months is applied on the unpaid amount of 15% of total tax liability. 

About the Author

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

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Quick Summary

Advance tax is paid in advance instead of lump sum at year-end. It applies to salaried individuals, businesses, and senior citizens with business income. Payment can be done online following specific steps. Failure to pay advance tax attracts interest. Calculated by estimating total income, deducting expenses and applying tax rates. Example provided for better understanding.

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