Advance Tax Calculator

Any taxpayer whose estimated tax liability for the financial year (after deducting TDS) is Rs 10,000 or more must pay advance tax. This includes salaried individuals with additional income sources, self-employed professionals, freelancers, and businesses. Resident senior citizens aged 60 and above who do not have any income from business or profession are exempt from paying advance tax.

Advance tax is paid in four quarterly installments: 15% by June 15, 45% cumulative by September 15, 75% cumulative by December 15, and 100% by March 15. These dates are firm deadlines. Missing even one installment triggers interest under Section 234C.

Missing advance tax payments attracts interest under two sections. Section 234B charges 1% per month on the shortfall if total advance tax paid is less than 90% of assessed tax. Section 234C charges 1% per month for 3 months on the shortfall for each quarter where the prescribed percentage was not met.

Section 234C charges simple interest at 1% per month for 3 months on the shortfall for each quarter. If you paid only 10% by June 15 instead of the required 15%, interest is charged on the 5% shortfall for 3 months. For the last quarter (March 15), interest is charged for 1 month on any shortfall.

Section 234B applies when total advance tax paid during the year is less than 90% of the assessed tax. Interest at 1% per month (simple interest) is charged on the shortfall amount from April 1 of the assessment year until the date of determination of income under regular assessment. Every part of a month is treated as a full month.

Yes. TDS already deducted from your salary, interest, professional fees, rent, or other income is credited against your total tax liability. The advance tax you need to pay is calculated as: Total Tax Liability minus TDS expected to be deducted. Use the TDS calculator to estimate your TDS amounts.

Yes. Advance tax provisions apply regardless of whether you choose the Old or New Tax Regime. The tax computation differs between regimes, but the obligation to pay advance tax in quarterly installments remains if your liability after TDS exceeds Rs 10,000. Use the income tax calculator to compare regime tax amounts.

Yes, you can pay the entire advance tax liability in a single payment before March 15. This avoids Section 234B interest. However, paying everything in March means you will still face Section 234C interest for the first three quarters where you paid nothing. The most economical approach is to follow the quarterly schedule.

Advance tax can be paid online through the Income Tax Department e-filing portal (incometax.gov.in) using Challan No. 280. Select the correct assessment year, choose "Advance Tax (100)" as the payment type, and pay through net banking, debit card, or UPI. Keep the challan receipt for your records.

TDS is deducted by the payer from your income at source (your employer deducts tax from salary, bank deducts from interest). Advance tax is paid proactively by you on income where TDS has not been fully deducted. Self-employed income, capital gains, and rental income are common situations where advance tax is needed.

Capital gains are treated differently. Short-term and long-term capital gains are added to your total income, and the advance tax is computed on the combined amount. Since capital gains happen at unpredictable times, if a gain occurs after a due date has passed, you can pay the entire tax in the next available installment without 234C interest for earlier quarters.

Yes. Freelancers and self-employed professionals whose estimated tax liability after TDS exceeds Rs 10,000 must pay advance tax. Since freelance income may not have full TDS coverage (clients may or may not deduct TDS under Section 194J), the remaining liability must be covered through quarterly advance tax installments.

You can revise your advance tax calculations at any point during the year. If your income increases, pay a higher amount in the next installment to catch up. If income decreases, reduce future installments. The key is to ensure that cumulative payments meet the percentage milestones by each due date to avoid 234C interest.

Salaried employees whose employer deducts full TDS on salary typically do not need to pay advance tax. However, if you have additional income from freelancing, rent, capital gains, or FD interest where TDS is insufficient, and the net tax liability exceeds Rs 10,000, you must pay advance tax on the balance amount.

Not paying advance tax attracts Section 234B interest at 1% per month on the difference between 90% of assessed tax and the advance tax actually paid. This continues from April 1 of the AY until assessment. Additionally, Section 234C interest applies for each quarter where the cumulative percentage was not met.

Tax paid after March 15 but before March 31 (the end of the financial year) is treated as advance tax. However, payments after March 31 are treated as self-assessment tax under Section 140A, not advance tax. Late payments attract interest under Sections 234A, 234B, and 234C depending on the delay.

Businesses and professionals opting for presumptive taxation under Section 44AD, 44ADA, or 44AE get a relaxation. They can pay their entire advance tax liability in a single installment by March 15 instead of four quarterly installments. No Section 234C interest applies if the full amount is paid by March 15.

Under the Old Regime, deductions like Section 80C (up to Rs 1.5 lakh for PPF, ELSS, insurance), 80D (health insurance), 80CCD(1B) (additional Rs 50,000 NPS), 80E (education loan interest), 80G (donations), and HRA exemption reduce your taxable income and consequently your advance tax liability.

The New Regime allows very limited deductions. The Rs 75,000 standard deduction on salary is available. Employer contributions to NPS under Section 80CCD(2) are allowed. Section 80JJAA (new employment deduction) also applies. Most other deductions under Chapter VIA are not available, which often results in higher taxable income under the New Regime.

There is no minimum income threshold for advance tax directly. The trigger is a tax liability exceeding Rs 10,000 after subtracting TDS. For example, under the New Regime with no TDS, a taxable income of about Rs 4.5 lakh to Rs 5 lakh (depending on surcharge and cess) would result in a tax liability crossing Rs 10,000.

Partnership firms and LLPs pay tax at a flat rate of 30% (plus surcharge and cess). The advance tax is computed on the firm estimated total income at this flat rate, and quarterly installments follow the same 15-45-75-100 schedule. If you are setting up a new firm, explore LLP registration options.

Yes. If your total advance tax and TDS payments exceed your final tax liability, the excess is refunded when you file your income tax return. The refund is processed after the return is assessed by the Income Tax Department. Interest at 0.5% per month is paid on the refund amount from April 1 of the AY.

Underestimation leading to a shortfall in advance tax will attract Section 234B interest (if total payment is below 90% of assessed tax) and Section 234C interest (for quarters where cumulative percentage targets were missed). There is no separate penalty for underestimation, only interest charges on the shortfall.

NRIs earning income in India (such as rent, capital gains, professional fees) that exceeds the basic exemption limit must pay advance tax on their Indian income. The advance tax schedule is the same as for residents. TDS deducted on NRI income in India can be offset against the advance tax liability.

Agricultural income is exempt from income tax under Section 10(1). However, for non-agricultural income exceeding Rs 2.5 lakh, agricultural income is considered for rate calculation purposes (partial integration method). The resulting advance tax is computed on non-agricultural income only, at the blended rate.

Form 26AS is your annual tax credit statement. It shows all TDS credits, advance tax payments, self-assessment tax, and TCS credits against your PAN. Before calculating advance tax for each quarter, check Form 26AS to verify the TDS already credited so you pay only the balance amount.

Companies must follow the same quarterly schedule: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. Companies opting for presumptive taxation under Section 44AD are an exception and can pay by March 15 in one installment. All other companies face 234C interest for deferment.

If you earn rental income and TDS is not deducted (individual tenants paying below Rs 50,000 per month are not required to deduct TDS), you must estimate this income and include it in your advance tax calculation. Net rental income (after standard 30% deduction and interest on home loan) is added to total income.

Calculate your total income from all sources: salary (after standard deduction), business profits, rental income, capital gains, and other income. Subtract total expected TDS from all sources. If the remaining tax liability exceeds Rs 10,000, pay advance tax on the balance through quarterly installments.

There is no official grace period. If you miss the June 15, September 15, December 15, or March 15 deadline, interest under Section 234C starts from the next day. However, if the delay is minor and you make up the shortfall in the next quarter, the 234C interest is limited to 3 months per quarter.

Track advance tax payments through: (1) Challan receipt with BSR code and serial number received after each online payment, (2) Form 26AS on the income tax portal which shows all payments against your PAN, and (3) Your own records maintained throughout the year. Reconcile everything before filing your annual return.

Advance tax is paid during the financial year in quarterly installments before the income is fully earned. Self-assessment tax (Section 140A) is the balance tax paid at the time of filing the income tax return, after accounting for all TDS and advance tax already paid. Both are paid using Challan 280.

Yes. Startup founders with income from salary, equity, capital gains, or dividend must pay advance tax if the liability exceeds Rs 10,000. If the startup is a company, it must separately pay advance tax on its corporate income. If starting a new business, check company registration options for the right structure.

To avoid all interest: pay at least 15% by June 15, 45% cumulative by September 15, 75% cumulative by December 15, and 100% by March 15. Ensure total advance tax is at least 90% of your assessed tax to avoid Section 234B interest. Overestimate slightly rather than underestimate to stay safe.

Employers only deduct TDS on salary under Section 192. They cannot pay advance tax on your behalf for non-salary income. If you have income beyond salary (freelancing, rent, capital gains), you must independently calculate and pay advance tax on that additional income through Challan 280.