Advance tax is the system / process of paying income tax in instalments throughout the financial year as income is earned, rather than as a lump sum at the year-end. It is also known as the “pay-as-you-earn” scheme and is mandatory if your estimated net tax liability for the financial year (after adjusting for TDS) exceeds INR.10,000.00.
All the taxpayers / assessees, including individuals, HUF, Firms / LLPs, and all the companies must pay advance tax, if their net tax liability is INR.10,000.00 or more for the year.
Advance Tax Due dates
| SL Number | Instalments | Due Dates | Advance Tax Payable |
| 1 | First | June 15th | 15% of total liability |
| 2 | Second | September 15th | 45% of total liability (cumulative) |
| 3 | Third | December 15th | 75% of total liability (cumulative) |
| 4 | Fourth | March 15th | 100% of total liability (cumulative) |
Special Provision for Presumptive Taxation: Taxpayers who opt for the presumptive taxation scheme under Section 44AD or 44ADA must pay their entire advance tax liability in a single instalment by March 15th (or by March 31st, which is treated as advance tax).
Advance Tax Calculation
- Compute your projected / estimated total income for the year.
- Deduct eligible deductions / exemptions, if any as it may applicable.
- Find our tax liability for the year.
- Deduct TDS, if any.
- If the net tax payable is more than or equal to INR. 10,000.00, please pay advance tax as per schedule.
How to Pay Advance Tax
- Please login to https://eportal.incometax.gov.in/iec/foservices/#/login
- In e-File tab navigate to > E-Pay Tax > New Payment > Assessment Year – 2026-26 (For FY – 2025-26) > Advance Tax (100) > Fill the amount and pay.
Consequences of Non-Payment or Shortfall
Failure to pay advance tax on time or a shortfall in the payment attracts interest charges under the Income Tax Act.
- Section 234B charges interest at 1% per month on the unpaid amount if less than 90% of the total tax liability is paid by the end of the financial year (March 31st).
- Section 234C charges interest at 1% per month for a period of three months (or one month for the last instalment) on the amount of the shortfall for each missed or inadequate instalment payment.
Thank you.
Courtesy: Team Direct Tax
Ganashri Advisers India LLP | +91 94801 18310 | +91 83106 26652 |
https://www.ganashri.com | cg@ganashri.com | LinkedIn: www.linkedin.com/in/chinmayahegde
Disclaimer
The information contained in this blog is provided for general guidance and informational purposes only. While efforts have been made to ensure the accuracy and timeliness of the deadlines, requirements and regulatory updates listed, laws and regulations are subject to change and may vary based on jurisdiction, industry, business constitution and specific circumstances.
This blog does not constitute legal, tax, accounting, or professional advice, nor should it be relied upon as a substitute for consultation with qualified advisors. Users are responsible for independently verifying all dates, obligations and compliance requirements applicable to their organization.
The team Ganashri assumes no responsibility or liability for any errors, omissions, or consequences resulting from the use of this blog.