Advance Tax Instalment Schedule
If your net tax liability (after TDS) for the year exceeds ₹10,000, the Income Tax Act requires you to pay advance tax in four instalments through the year, rather than as one lump sum at filing time:
- By 15 June: 15% of the total advance tax liability
- By 15 September: 45% of the total liability (cumulative)
- By 15 December: 75% of the total liability (cumulative)
- By 15 March: 100% of the total liability (cumulative)
Why Advance Tax Exists
Advance tax follows a "pay as you earn" principle, ensuring the government receives tax revenue throughout the year rather than in one lump sum after year-end, and helps taxpayers spread their tax burden across the year instead of facing one large payment.
Consequences of Not Paying on Time
Under Sections 234B and 234C, failing to pay adequate advance tax on time attracts interest at 1% per month on the shortfall, so accurately estimating and paying each instalment on time helps avoid this additional cost.
Frequently Asked Questions
Who needs to pay advance tax?
Any taxpayer (individual, freelancer, business) whose total tax liability for the year, after TDS/TCS, exceeds ₹10,000 is required to pay advance tax in quarterly instalments.
What happens if I underpay an instalment?
Under Sections 234B and 234C of the Income Tax Act, underpayment of advance tax attracts interest at 1% per month on the shortfall amount.
Do salaried employees need to worry about advance tax?
If your employer deducts sufficient TDS covering your full tax liability, you typically don't need to pay additional advance tax. It becomes relevant if you have significant other income (capital gains, freelance income, rent) not covered by TDS.
This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.