Advance Tax Assistance

Who is required to pay advance tax?

Any taxpayer — individual, freelancer, professional, business, or company — whose estimated total tax liability for the financial year is ₹10,000 or more after adjusting TDS/TCS must pay advance tax under Section 208 of the Income Tax Act. This includes salaried individuals with significant capital gains, rental income, or freelance income that is not fully covered by TDS.

Is advance tax applicable to senior citizens?

No. Under Section 207(2), a resident senior citizen (60 years or above) who does not have income from business or profession is exempt from paying advance tax, even if their tax liability exceeds ₹10,000. They can pay their entire tax liability as self-assessment tax while filing the return.

What are the advance tax due dates and installment percentages?

For all taxpayers except those opting for presumptive taxation: 15% of tax liability by 15 June, 45% (cumulative) by 15 September, 75% (cumulative) by 15 December, and 100% by 15 March. Taxpayers under the presumptive scheme (Sections 44AD/44ADA) can pay 100% of their liability in a single installment by 15 March.

What happens if I miss an advance tax installment or underpay?

Two interest provisions apply: Section 234C charges 1% per month for shortfall in each individual quarterly installment (deferment interest), and Section 234B charges 1% per month on the unpaid amount from 1 April of the assessment year if less than 90% of total tax liability is paid as advance tax by 31 March. Both are calculated on the shortfall amount and add up quickly over several months.

Can I revise my advance tax estimate during the year?

Yes. Advance tax is meant to be a running estimate — you are expected to reassess income at each quarter and adjust the remaining installments upward or downward. If your income increases mid-year (a bonus, a large freelance project, or capital gains from a share sale), later installments should absorb the additional liability so you don't fall short of the 90%-by-March-end threshold.

How do I pay advance tax online?

Advance tax is paid using Challan No./ITNS 280 through the Income Tax Department's e-Pay Tax service on the official portal, selecting "(100) Advance Tax" as the payment type. Payment can be made via net banking, debit card, RTGS/NEFT, or UPI. Our CA team computes the exact amount and prepares the challan for you to pay directly with the correct assessment year and payment head selected.

Does advance tax apply to capital gains from shares or property?

Yes, but with a relaxation: since capital gains cannot always be predicted in advance, if such income arises after an installment due date, the entire tax on that gain can be paid in the immediately following installment without attracting Section 234C interest, provided no shortfall exists for earlier installments.

What is the difference between advance tax and self-assessment tax?

Advance tax is paid in installments during the financial year itself, based on estimated income. Self-assessment tax is any balance tax paid at the time of filing the income tax return (after the year has closed), once actual income and TDS are known. Paying advance tax on time avoids the interest that accrues on amounts settled only as self-assessment tax.