Advance Tax Payment: Due Dates, Calculator, Applicability & How to Pay in 2025

Let’s be honest — most of us don’t think about taxes until March.

But if your total tax after TDS goes over ₹10,000 in a year, the Income Tax Department doesn’t want to wait. They want you to pay it in chunks before the year ends.

This is what’s called Advance Tax.

Instead of paying everything at once, you pay it across the year. It’s simple, legal, and can actually save you from interest and penalties later on. Let’s walk through what it is, who needs to pay, and how you can do it easily — without any jargon.

Advance Tax Due Date

The taxman gives you four specific dates to pay advance tax. Miss them, and you may be charged interest — even if you were just a little late.

So yes, the dates matter.

What is Advance Tax?

Advance tax means paying your income tax as you earn — not all at once at year-end.

If you owe more than ₹10,000 in taxes (after TDS), the law says you need to pay it in advance — spread over 4 installments.

This can apply to:

• Salaried people with extra income (like rent, stock profits, FD interest)
• Freelancers or business owners
• Anyone earning from capital gains, dividends, crypto, etc.

You don’t have to be rich or run a company. Even a side hustle can trigger advance tax.

Who Should Pay Advance Tax?

Let’s keep it simple.

You need to pay advance tax if:

• Your tax due after TDS is more than ₹10,000 in a year
• You have income that doesn’t get TDS deducted — like rent, interest, trading profits
• You’re self-employed, a consultant, or earning as a freelancer

But here’s some relief:

 Senior citizens (60+) who don’t have business income are exempt from advance tax.

Advance Tax Due Dates for FY 2025–26

Here are the dates and how much you need to pay by each one:

Set a calendar reminder. No one wants to pay extra interest for forgetting a due date.

How to Make Advance Tax Payment Online?

The good news? You don’t need to go anywhere. You can do this from your phone or laptop in just a few steps:

1. Go to incometax.gov.in or tin-nsdl.com
2. Pick Challan 280
3. Enter your PAN, assessment year (2026–27), and other basic info
4. Choose Advance Tax (Code 100)
5. Pay through UPI, debit card, or net banking
6. Download the receipt. You’ll need it later while filing ITR

That’s it. No paperwork. No long queues.

What is Advance Tax Late Payment Interest?

The tax department charges interest if you’re late or don’t pay enough:

• Section 234B: If you haven’t paid 90% of your total tax by the end of the year, you’ll be charged 1% interest per month on the shortfall.
  
• Section 234C: If you miss any installment or pay less than required, it’s 1% interest for 3 months.

It adds up. So paying on time really helps.

How is Advance Tax Payment Calculated?

Let’s break it down:

1. Add up all the income you expect this year — salary, rent, FD interest, stocks, side gigs, everything.
2. Subtract deductions (80C, 80D, etc.)
3. Use the tax slab to find how much tax you owe
4. Subtract any TDS already paid (check your Form 26AS or salary slip)
5. If the remaining amount is over ₹10,000 → pay it as per the 4 due dates

Not into manual maths? Use an online advance tax calculator — there are plenty.

Example for Advance Tax Calculation

Let’s say this is your income for FY 2025–26:

Minus deductions (like 80C/80D) = ₹1,50,000
 Taxable Income = ₹11,50,000
 Total tax (incl. cess) = ₹1,06,600
 TDS already paid = ₹25,000
 Advance Tax payable = ₹81,600

Now, break it into installments:

And you’re done. No shocks at the end of the year.

Tax Payable/ Tax Refundable

No problem. If you pay more tax than required, you’ll get a refund when you file your ITR. And in some cases, the tax department even gives you a bit of interest on the extra.

Just make sure:

• Your bank account is linked to your PAN
• Your bank details are pre-validated on the portal

FAQ

1. What are the 4 installments of advance tax?

You need to pay advance tax in 4 parts:

• 15% by June 15
• 45% by September 15
• 75% by December 15
• 100% by March 15
  

2. What are the dates for advance tax payment in FY 2023–24?

They were:

• June 15, 2023
• September 15, 2023
• December 15, 2023
• March 15, 2024

3. What is the procedure for advance tax payment?

 Go to incometax.gov.in, pick Challan 280, choose Advance Tax, fill your details, pay online, and save the receipt

4. What is the rule of advance payment?

 If your total tax due after TDS is more than ₹10,000 in a year, the government expects you to pay it in advance, not just at the end.

Conclusion

Advance tax may sound complex, but it’s really about being financially aware. Instead of waiting till March and scrambling for money, you can plan ahead and pay in parts.

It’s smoother. It’s smarter. And it helps you stay clear of interest or penalties.

If you’ve got extra income apart from your salary, don’t ignore advance tax — it could save you from a headache later.

Disclaimer : Investments in debt securities/ municipal debt securities/ securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully.