Advance Tax Calculator. Pay as you earn.

Any taxpayer whose total income tax liability for the year, after subtracting TDS already deducted, is ₹10,000 or more must pay advance tax under Section 208. This is not limited to businesses. It includes salaried employees who earn extra income (interest, capital gains, rent, dividends, freelance fees) on which enough tax is not already withheld, plus freelancers, professionals, consultants, traders and companies. Resident senior citizens (aged 60+) with no income from business or profession are exempt from advance tax. If your net liability stays below ₹10,000, you can simply pay it as self-assessment tax when you file.

For non-presumptive taxpayers, FY 2025-26 advance tax is paid in four installments with cumulative targets: by 15 June 2025 pay 15% of total advance tax; by 15 September 2025 reach 45% cumulative; by 15 December 2025 reach 75% cumulative; and by 15 March 2026 reach 100%. In incremental terms that is 15%, then 30%, then 30%, then a final 25%. If a due date falls on a Sunday or bank holiday, payment on the next working day is generally accepted. Missing or underpaying a target triggers interest under Section 234C on the shortfall.

Taxpayers who opt for the presumptive taxation scheme get a simplified single-installment rule. Small businesses under Section 44AD and professionals such as doctors, lawyers, architects and consultants under Section 44ADA are not required to pay the four quarterly installments. Instead, they pay 100% of their advance tax liability in one installment by 15 March 2026. Any shortfall after that date is treated as self-assessment tax. This concession only covers those actually declaring income on a presumptive basis; if you keep regular books and are assessed normally, the standard 15/45/75/100% four-installment schedule applies.

These are two separate interest charges for advance tax defaults, each at 1% per month simple interest. Section 234B applies when you pay less than 90% of your assessed tax as advance tax by 31 March; interest runs from 1 April until the tax is paid. Section 234C applies when individual installments fall short of their cumulative targets (15%, 45%, 75%, 100%); it is charged for the period of deferment on each shortfall, generally three months per installment and one month for the final one. Paying each installment on time and in full avoids both. This calculator flags the shortfall but does not compute the interest itself.

Advance tax is only payable on the tax that is not already collected through TDS (tax deducted at source). You first estimate your total tax for the year including the 4% Health and Education Cess, then subtract the TDS your employer, bank or other payers have deducted or will deduct. The remaining balance is your advance tax, and the ₹10,000 threshold is tested on that net figure. Salaried employees whose employers deduct enough TDS on salary often owe no advance tax on that salary, but must still pay advance tax on side income (interest, capital gains, rent) where TDS is nil or too low.