Advance Tax Payment Guide 2025: Dates, Calculator & How to Pay Online
Step-by-step guide to paying advance tax online with due dates and penalty calculation
- Threshold: Pay advance tax if your tax liability exceeds Rs.10,000 after TDS deductions
- 4 Deadlines: June 15 (15%), Sept 15 (45%), Dec 15 (75%), March 15 (100%)
- Penalty: 1% interest per month under Section 234B/234C for late or missed payments
- Senior Citizen Exemption: Those 60+ with no business income are exempt from advance tax
What is Advance Tax?
Advance tax is the income tax paid in installments during the financial year instead of paying a lump sum at year-end. It's also known as "pay-as-you-earn" tax.
If your total tax liability for the year exceeds ₹10,000 after TDS, you must pay advance tax. It applies to:
- Salaried individuals with additional income
- Freelancers and consultants
- Business owners and professionals
- Investors with capital gains
- Anyone with income from house property
Advance Tax Payment Dates FY 2025-26
Mark these critical dates in your calendar to avoid interest penalties.
Each figure is cumulative — pay 15%, then 30% more, then 30% more, then the final 25%. Missing any installment deadline attracts 1% interest per month under Section 234C. Plan ahead.
The March 15 strategy: If you missed earlier deadlines, pay 100% of your estimated tax by March 15 to avoid Section 234C interest on the final installment. For freelancers under Section 44ADA presumptive taxation, you can pay your entire advance tax in a single installment on March 15 without any penalty.
How to Calculate Advance Tax
step-by-step- 01 ·
Estimate annual income
Calculate total income from all sources: salary, business, capital gains, etc.
- 02 ·
Calculate tax liability
Apply tax rates as per your chosen regime (old / new).
- 03 ·
Deduct TDS / TCS
Subtract tax already deducted at source.
- 04 ·
Calculate installments
Apply percentages: 15%, 45%, 75%, 100%.
example · advance_tax.ledger
| Estimated annual income | ₹15,00,000 |
| Tax liability (new regime) | ₹1,87,500 |
| Less: TDS from salary | − ₹50,000 |
| Net tax payable | ₹1,37,500 |
Installment schedule
How to Pay Advance Tax Online
- 01 ·
Visit the income tax portal
- 02 ·
Select challan type
Choose Challan 280 for advance tax payment.
- 03 ·
Fill details
Enter PAN, assessment year, address, and tax amount.
- 04 ·
Payment mode
Pay via net banking, debit card, or UPI.
- 05 ·
Save receipt
Download and save the BSR Code receipt for ITR filing.
Penalty for Non-Payment
Section 234B: 1% per month on unpaid tax from April 1 to date of payment.
Section 234C: 1% per month for shortfall in each installment.
Note: Interest is calculated for every month or part of month. Even a 1-day delay counts as a full month.
Important Points to Remember
- Senior citizens (60+ years) with no business income are exempt from advance tax
- Advance tax can be paid in lump sum before March 31 instead of installments
- Revise estimates if income increases / decreases during the year
- Save all payment receipts for ITR verification
Use Our Income Tax Calculator
Not sure how much advance tax to pay? Use our free income tax calculator to estimate your tax liability for FY 2025-26. Freelancers can also check the freelancer advance tax calculator for quarterly payment schedules.
Conclusion
Paying advance tax on time helps avoid penalties and ensures smooth tax compliance. Plan your cash flows to meet advance tax deadlines, and always maintain records of payments for future reference.
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