🇮🇳 India · Guide

Advance Tax — Complete Overview

If you owe more than ₹10,000 in tax after TDS, you're expected to pay it in installments through the year — not as a lump sum at filing time.

FY 2025-26Last reviewed 24 Jul 2026

Who needs to pay

Anyone whose total tax liability (after subtracting TDS/TCS) exceeds ₹10,000 for the year. This typically includes freelancers, business owners, and salaried individuals with significant additional income — capital gains, rental income, high interest income — beyond what their employer's TDS covers.

Senior citizens (60+) without business income are exempt from advance tax.

Installment schedule

Due Date	Cumulative % of Tax Due
15 June	15%
15 September	45%
15 December	75%
15 March	100%

Penalty for non-payment or shortfall

Section 234B — interest at 1% per month if you've paid less than 90% of your assessed tax by 31 March
Section 234C — interest at 1% per month for shortfall in any individual installment, even if the year-end total is correct

Work out your exact installment amounts.

Use the Advance Tax Calculator →

GENERAL GUIDANCE

Interest calculations under 234B/234C have specific rules not fully covered here. Verify with a CA if you've had a shortfall in any installment.