Advance tax

Also known as: pay-as-you-earn tax

Advance tax is income tax paid in instalments during the financial year, rather than as a lump sum at year-end, required when the total tax liability for the year exceeds ₹10,000.

Advance tax is due in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Shortfalls attract interest under sections 234B and 234C. Taxpayers under the presumptive scheme pay 100% by 15 March.

Formula

Instalments: 15% (Jun 15), 45% (Sep 15), 75% (Dec 15), 100% (Mar 15)

Example: ₹4,00,000 estimated tax → ₹60,000 due by 15 June.

See also

Related terms

Section 234B interestSection 234C interestSelf-assessment tax

General information, not tax, legal or accounting advice. Thresholds and timelines change by notification — confirm applicability with your CA, CS, or lawyer.

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