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Calculate your quarterly advance tax instalments, due dates, and potential interest liability under Section 234B & 234C
New Tax Regime - FY 2025-26
Your tax liability after TDS is below ₹10,000.
| Quarter | Due Date | % | Cumulative | Amount | Status |
|---|
Estimates based on Income Tax Act. For exact calculations, use the official portal.
Advance tax, also known as "pay-as-you-earn" tax, is the income tax paid in advance during the financial year instead of a single payment at the end. The concept ensures a steady flow of revenue to the government and helps taxpayers avoid the burden of paying a large sum at once.
As per Section 208 of the Income Tax Act, any person whose estimated tax liability for the year exceeds ₹10,000 (after reducing TDS/TCS) is required to pay advance tax. This applies to salaried individuals with additional income, self-employed professionals, freelancers, and business owners.
Advance tax is applicable only if your tax liability exceeds ₹10,000 after deducting TDS and TCS for the financial year.
Resident senior citizens (60+ years) without income from business or profession are exempt from paying advance tax.
Taxpayers under Section 44AD/44ADA can pay 100% advance tax in a single instalment by 15th March.
Pay online via the Income Tax e-Filing portal using Challan 280, through net banking, debit card, or UPI.
Advance tax must be paid in four quarterly installments during the financial year. Each installment covers a specific percentage of your total estimated tax liability:
| Instalment | Due Date | % of Tax Liability | Cumulative % |
|---|---|---|---|
| 1st Instalment | 15th June 2025 | 15% | 15% |
| 2nd Instalment | 15th September 2025 | 30% | 45% |
| 3rd Instalment | 15th December 2025 | 30% | 75% |
| 4th Instalment | 15th March 2026 | 25% | 100% |
Taxpayers opting for presumptive taxation under Section 44AD (for businesses) or Section 44ADA (for professionals) are required to pay their entire advance tax (100%) in a single instalment on or before 15th March 2026. They also have the option to pay by 31st March.
Your advance tax is calculated based on the applicable income tax slabs. Budget 2025 introduced significant changes to the new tax regime, making it more attractive for most taxpayers.
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹20,00,000 | 20% |
| ₹20,00,001 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| + Deductions u/s 80C, 80D, HRA etc. | |
Section 87A Rebate (New Regime): Resident individuals with taxable income up to ₹12 lakh can claim a rebate of up to ₹60,000, effectively making income up to ₹12 lakh tax-free. Salaried individuals get an additional benefit of ₹75,000 standard deduction, making income up to ₹12.75 lakh tax-free.
You are liable to pay advance tax if:
Failing to pay advance tax on time attracts interest penalties under the Income Tax Act. Understanding these provisions helps you avoid unnecessary financial burden:
If advance tax paid is less than 90% of the assessed tax, interest @1% per month is charged from 1st April of the Assessment Year until the date of payment of tax.
Interest @1% per month for 3 months is charged for shortfall in payment of each quarterly instalment. For the last instalment, interest is charged for 1 month.
Follow these steps to calculate your advance tax liability:
Paying advance tax online is quick and convenient through the Income Tax e-Filing portal:
If you miss an advance tax instalment, you will be charged interest under Section 234C at 1% per month on the shortfall amount. Additionally, if your total advance tax paid by March 31 is less than 90% of your assessed tax, interest under Section 234B will also apply at 1% per month from April 1 until you pay the remaining tax.
Yes, any tax paid on or before 31st March of the financial year is considered advance tax. However, you may incur interest under Section 234C for the shortfall in the March 15 instalment. Paying before March 31 still helps reduce interest liability under Section 234B.
Resident senior citizens (60 years or above) who do not have income from business or profession are exempt from paying advance tax, even if their tax liability exceeds ₹10,000. However, if they have business income, they must pay advance tax like other taxpayers.
Advance tax is paid during the financial year in quarterly instalments before the income is earned or finalized. Self-assessment tax is the balance tax paid at the time of filing ITR after accounting for advance tax and TDS. Both are paid using Challan 280 but with different payment codes.
Yes, capital gains are taxable and should be included in advance tax calculation. However, since capital gains are often unpredictable, the law provides relief - no interest under Section 234C is charged if the shortfall is due to capital gains, provided you pay the tax on such gains in the subsequent instalment or by March 31.
Taxpayers opting for presumptive taxation under Section 44AD (businesses with turnover up to ₹3 crore) or Section 44ADA (professionals with receipts up to ₹75 lakh) can pay 100% of their advance tax in a single instalment by March 15. They are not required to pay quarterly instalments.
Yes, NRIs earning taxable income in India exceeding ₹10,000 (after TDS) are liable to pay advance tax. This includes income from rent, capital gains, interest, or any business conducted in India. NRIs should follow the same quarterly schedule as resident taxpayers.
If you pay more advance tax than your actual liability, the excess amount will be refunded after you file your Income Tax Return (ITR). The Income Tax Department processes refunds with interest under certain conditions. Ensure your bank account is linked and pre-validated on the e-filing portal for faster refunds.
Advance tax is paid using Challan 280 (now called ITNS 280). When filling the challan online, select 'Income Tax (Other than Companies)' as Major Head (0021), 'Advance Tax' as Type of Payment (100), and the relevant Assessment Year (2026-27 for FY 2025-26).
You can verify your advance tax payments through Form 26AS (Tax Credit Statement) available on the Income Tax e-Filing portal. Navigate to e-File → Income Tax Returns → View Form 26AS. It shows all taxes paid including TDS, TCS, and advance tax against your PAN.
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