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

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

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.

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.

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

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

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

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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).

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.

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. 

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 15^th of June, then 1% per month for three months is applied on the unpaid amount of 15% of total tax liability. 

You have to pay 45% of the tax liability by 15th September.