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Advance Tax Calculator
Section 208 · FY 2025-26 (AY 2026-27) · 4 Instalments · Avoid 234B & 234C Interest
Know exactly how much to pay by 15 June, 15 Sep, 15 Dec & 15 March
SalariedFreelancerBusinessInvestorSenior Citizen
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Threshold
₹10,000
total tax/year
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Instalments
4 per year
Jun · Sep · Dec · Mar
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Section
208 / 234C
IT Act 1961
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Late interest
1%/month
Sec 234B & 234C
Taxpayer type
Tax regime
Income details — FY 2025-26
₹
₹5L₹5Cr
₹
₹0₹50L
Advance tax already paid this year (enter 0 if not paid yet)
₹
₹0₹50L
₹
₹0₹50L
₹
₹0₹50L
₹
₹0₹50L
Total tax liability
₹2.78 L
13.9% effective rate
Advance tax needed
₹1.78 L
after ₹₹1.0L TDS credit
Still to pay
₹1.78 L
no payment made yet
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Estimated interest under Sec 234C: ₹12,563
Based on your payments so far, you may owe approximately ₹12,563 in interest for shortfall in instalments (1% per month for 3 months per quarter). Pay the due instalments on time to avoid this.
Advance tax instalment schedule — FY 2024-25
| Quarter | Due date | Cumulative % | Amount due | This instalment | You paid | Balance |
|---|---|---|---|---|---|---|
| Q1 | 15 June | 15% | ₹26,730 | ₹26,730 | — | ₹26,730 |
| Q2 | 15 September | 45% | ₹80,190 | ₹53,460 | — | ₹80,190 |
| Q3 | 15 December | 75% | ₹1.34 L | ₹53,460 | — | ₹1.34 L |
| Q4 | 15 March | 100% | ₹1.78 L | ₹44,550 | — | ₹1.78 L |
| Total advance tax | ₹1.78 L | ₹1.78 L | — | ₹1.78 L | ||
Instalment amounts — visual
RequiredPaid
Q1Q2Q3Q4
Q1 · June
₹26,730
Q2 · September
₹53,460
Q3 · December
₹53,460
Q4 · March
₹44,550
Full tax computation
| Particulars | Amount |
|---|---|
| Gross income | ₹20.00 L |
| Standard deduction | − ₹75,000 |
| Taxable income | ₹19.25 L |
| Tax on slab income | ₹2.67 L |
| Basic tax after rebate | ₹2.67 L |
| Health & Education Cess @ 4% | ₹10,700 |
| Total tax liability | ₹2.78 L |
| Less: TDS deducted | − ₹1.00 L |
| Advance tax to be paid | ₹1.78 L |
How advance tax instalments are calculated
Advance tax = Total tax − TDS deducted
Q1 (by 15 Jun) = 15% of advance tax
Q2 (by 15 Sep) = 45% cumulative − Q1 paid
Q3 (by 15 Dec) = 75% cumulative − Q1+Q2 paid
Q4 (by 15 Mar) = 100% cumulative − Q1+Q2+Q3 paid
Example: Total advance tax = ₹2,00,000
Q1: 15% × ₹2L = ₹30,000 (by 15 June)
Q2: 45% × ₹2L − ₹30,000 = ₹60,000 (by 15 Sep)
Q3: 75% × ₹2L − ₹90,000 = ₹60,000 (by 15 Dec)
Q4: 100% × ₹2L − ₹1,50,000 = ₹50,000 (by 15 Mar)
What is Advance Tax? Complete Guide - Section 208
Advance tax is income tax paid in instalments during the financial year itself — before your actual income is finalised — rather than as a lump sum at year-end. Under Section 208 of the Income Tax Act, any taxpayer whose total tax liability for a financial year exceeds ₹10,000 (after TDS credit) is required to pay advance tax in four instalments.
The government's logic is simple: instead of waiting until July to receive a year's worth of tax, the IT department collects it quarterly throughout the year. Failure to pay advance tax on time — or paying less than the required instalment — attracts interest under Section 234C at 1% per month.
Who must pay advance tax?
✓ Must pay advance tax
Salaried employees with TDS shortfall
Freelancers and consultants
Traders and investors (equity, F&O, crypto)
Self-employed professionals (doctors, CAs, lawyers)
Rental income earners with tax > ₹10,000
Business owners — individuals and partnerships
Companies and LLPs (all income, no threshold)
NRIs with India-sourced income
✗ Exempt from advance tax
Total tax liability below ₹10,000 after TDS
Senior citizens (60+) with ONLY salary/pension income
Senior citizens with no business/professional income
Employees where employer deducts full TDS on salary
Presumptive taxation scheme (Sec 44AD/44ADA) — pay in full by 15 March
Interest penalties — Section 234B and 234C
| Section | Trigger | Rate | Period | Example |
|---|---|---|---|---|
| 234B | Advance tax paid < 90% of total liability | 1% / month | April 1 to date of assessment | Paid ₹80K vs ₹1L due → interest on ₹20K shortfall |
| 234C | Instalment < required % by due date | 1% / month | 3 months per shortfall quarter | Paid 10% by June vs 15% required → interest on 5% shortfall |
| 234A | ITR filed after due date | 1% / month | Delay period | Filed 3 months late → 3% interest on balance tax |
How to pay advance tax online — step by step
01
Go to Income Tax e-filing portal
Visit incometax.gov.in → e-Pay Tax → Challan 280 (ITNS 280).
02
Select payment type
Choose '(100) Advance Tax' as the type of payment. Select FY 2024-25.
03
Enter PAN and details
Enter your PAN, assessment year (2025-26), and the amount to pay for each income head.
04
Pay via net banking / UPI
Complete payment via your bank's net banking or UPI. Download and save the Challan 280 receipt — you'll need the BSR code and serial number.
Calculate your total income tax first
Compare new vs old regime and get the exact tax before computing advance tax
Frequently asked questions about advance tax
Do salaried employees need to pay advance tax?▼
Usually no — because your employer deducts TDS on your salary monthly, which counts as advance tax. However, if you have additional income beyond salary — such as rental income, freelance income, capital gains from stocks or crypto, interest income, or business income — and the total tax on that additional income exceeds ₹10,000 after TDS credit, you must pay advance tax on those earnings quarterly.
What if I underestimate my income and pay less advance tax?▼
If you pay less than 90% of your actual tax liability as advance tax by March 31, you'll owe interest under Section 234B at 1% per month from April 1 until you pay. Additionally, if any instalment is short (e.g., less than 15% by June 15), Section 234C interest applies at 1% per month for 3 months on that shortfall. The IT system calculates this automatically when you file your ITR — you can't avoid it, but you can minimize it by revising your advance tax upward when your income estimate changes.
Can I revise my advance tax payment if my income changes?▼
Yes — advance tax is based on estimated income, and you can revise your estimate any time during the year. If your income increases mid-year (e.g., you get a big freelance project in October), you should increase your Q3 and Q4 instalments accordingly. If your income decreases (e.g., you lose a client), you can reduce future instalments. There's no penalty for changing your estimate — only for consistently paying less than the required cumulative percentages.
What is the difference between advance tax and self-assessment tax?▼
Advance tax is paid during the financial year in 4 instalments, based on estimated income. Self-assessment tax is the balance tax you pay after the year ends — when you file your ITR — if your actual tax liability turns out to be higher than the advance tax + TDS you already paid. Both use Challan 280 for payment, but the payment type selected differs: '100' for advance tax and '300' for self-assessment tax.
Do traders who make profits from F&O or intraday trading need to pay advance tax?▼
Yes — F&O trading income is treated as business income (not capital gains), and intraday equity trading is also speculative business income. Both are subject to advance tax. Since trading profits are volatile and hard to predict quarterly, many traders estimate conservatively for Q1/Q2/Q3 and make a larger Q4 payment by March 15 after the year's P&L is clearer. If you're in F&O, paying at least 75% of your estimated annual tax by December 15 is the minimum to avoid significant 234C interest.
What happens if I miss the 15 March deadline (Q4)?▼
Missing the Q4 advance tax deadline (March 15) has two consequences: (1) Section 234C interest at 1% per month for 3 months on the shortfall amount, and (2) if your total advance tax paid falls below 90% of your total liability, Section 234B interest kicks in from April 1 onwards until you pay. The Q4 shortfall is added to your self-assessment tax due when filing the ITR. You can still pay it as self-assessment tax before filing — but the interest under 234B continues to accrue.
Is advance tax applicable to presumptive taxation scheme taxpayers?▼
Yes, but with a simplified rule. Small businesses and professionals under the Presumptive Taxation Scheme (Section 44AD and 44ADA) can pay their entire advance tax liability in a single instalment by March 15 instead of the normal 4-instalment schedule. This is the key advantage of the presumptive scheme — no quarterly tracking needed. However, if they miss the March 15 deadline, both 234B and 234C interest apply on the full outstanding amount.
How do I claim TDS credit against advance tax?▼
TDS deducted by your employer, banks, clients, and others throughout the year automatically appears in your Form 26AS and Annual Information Statement (AIS). When computing advance tax, subtract your expected total TDS for the year from your total tax liability — the difference is your advance tax obligation. When filing your ITR, the TDS credit is automatically applied and any excess TDS becomes a refund. Always reconcile your Form 26AS before filing to ensure all TDS is correctly credited.