Rohit's first solo year was simple — under threshold, just settle at filing. Year 2 his receipts crossed ₹22L. His CA dropped a bomb in June: "You owe ₹1.5L advance tax by 15 September. Then again in December. Then March."
He didn't know advance tax existed. The 1% interest if you don't pay it kicks in fast.
- You must pay advance tax if your total tax liability > ₹10,000 after TDS.
- 4 due dates: 15 Jun (15%), 15 Sep (45%), 15 Dec (75%), 15 Mar (100%).
- Seniors (60+, no business income) and presumptive 44AD / 44ADA filers get relaxed rules.
- Pay via Challan ITNS 280 on the e-Filing portal. Miss it → 1% interest per month (234B / 234C).
Are you on the hook?
If your net tax payable (computed tax minus TDS already deducted at source) exceeds ₹10,000 in a financial year — yes.
Most-affected:
👉 Freelancers / consultants (high gross, low TDS)
👉 Business owners (no TDS at source)
👉 Anyone with large capital gains this year (sold property / shares)
👉 Salaried with significant side income (rent, FD interest, dividends)
The 4-date calendar
First instalment. Estimate the full year, pay 15% by today.
This instalment alone is 30%. Cumulative so far: 45%.
Another 30% this round. Cumulative: 75%.
Final 25%. Any shortfall paid by 31 March avoids the heaviest penalties.
Special rule — presumptive (44AD / 44ADA / 44AE)
If you file under presumptive scheme, you need to pay full advance tax in one instalment by 15 March. No quarterly breakdown. Easy for freelancers under 44ADA — but still: it's the full year's tax in one go, so estimate carefully.
Penalty for missing — the 234 sisters
Section 234B
Total shortfall
Paid < 90% of total tax by 31 March? 1% interest per month on shortfall, from 1 April of AY until paid.
Section 234C
Per-instalment shortfall
Missed a quarterly cut-off? 1% × 3 months on the shortfall for that instalment. Example: should have paid ₹50k by 15 Jun, paid ₹20k → ₹30k × 1% × 3 = ₹900.
How to pay — the 5-step
By 31 May. Project full year. Use last year as baseline + known changes.
Apply slabs (old or new). Subtract eligible deductions. Get gross tax.
What's likely to be deducted from salary, FDs, professional fees. Net = your advance tax.
e-Filing portal → e-Pay Tax → Challan ITNS 280 → (100) Advance Tax → AY → PAN → amount.
Note BSR code + Challan serial number. Enter in your ITR's tax-paid schedule when filing.
Capital gains — the mid-year exception
For capital gains arising mid-year (sold property in August), advance tax on that gain is due in the next instalment after the gain — not retroactively.
👉 Sold in August → pay gain-tax by 15 September.
👉 Sold in November → by 15 December.
👉 Sold in February → by 15 March.
Advance tax isn't extra tax — it's just paying through the year instead of at filing. The 1%/month penalty for skipping is way more painful than the cash-flow hit of paying on time.
Quick answers
Not needed. Employer TDS covers it. Unless you have significant other income (rent, capital gains, side consulting), you're fine.
Yes — but 234C penalty for past missed instalments still applies. Better to estimate well and stay on track.
Refunded via ITR. Plus interest under Section 244A at 6% p.a. if the refund is delayed beyond the prescribed window.
Yes — 60+ residents without business or professional income are fully exempt from advance tax. They settle via self-assessment at filing.
Different. Advance tax (code 100) paid during the year. Self-assessment tax (code 300) paid after FY end before filing ITR to settle any balance due.
When you might want help
The 4-date math is mechanical. Where help pays off: estimating income for irregular years (new product, lumpy capital gains), tracking quarterly cash flow against tax outflow, and computing exact 234B/234C if you've missed an instalment (saves over-paying the penalty).
Want advance tax computed & tracked?
We compute quarterly liability, send reminders, pay challan on your behalf. Include full ITR prep.