Quick answer: If your estimated tax for the year, after TDS and TCS, is ₹10,000 or more, you must pay advance tax in four instalments — 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Presumptive-scheme taxpayers can pay the full amount by 15 March. Paying late or short attracts interest.
Advance tax means paying income tax during the year as you earn, instead of in one lump sum at the time of filing. It applies to salaried people with other income as well as to professionals and businesses.
Instalment schedule
| Due date | Cumulative tax payable |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
Who must pay
- Individuals with income beyond salary — interest, rent, capital gains, freelance income
- Professionals and businesses
- Companies and firms
- Resident senior citizens without business income are generally exempt
How to avoid interest
- Estimate income early in the year and revise each quarter
- Include capital gains in the instalment following the sale
- Pay by the due date through the e-Pay Tax facility
- Keep challan details for your return
Frequently asked questions
What if my income changes during the year?
Revise your estimate and adjust the remaining instalments. Interest is calculated on shortfalls at each due date.
Is advance tax required for salaried employees?
Only if you have tax payable on income not covered by your employer’s TDS, such as interest, rent or capital gains.
Can you calculate my advance tax?
Yes — try our Advance Tax Calculator, or ask our CAs to compute it for you.
Related: Advance Tax Calculator · Taxation services
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