Advance Tax Payment: Due Dates, Calculator, Applicability, Procedure, Installment Details

Updated on: Jul 28th, 2025

7 min read

Advance Tax is a method of paying income tax in installments during the financial year, instead of paying a lump sum tax after the end of the financial year. Tax payers with a tax liability of more than Rs. 10,000 for the financial year must pay advance tax. Complying with the advance tax payment amount of and advance tax payment due dates is crucial to avoid interest penalties under sections 234B and 234C of the Income Tax Act.

In this article, we will learn in detail what is advance tax, applicability, advance tax instalments, advance tax due dates and exceptions to advance tax along with illustrations.

Advance Tax Due Date
The due date to pay the 2st installment of advance tax for second quarter (July-September) FY 2025-26 is September 15, 2025. Taxpayers should make sure to pay 45% of the total tax liability for the year by September 15, 2025.

Advance Tax Calculator – Calculate Advance Tax Liability

Use this intuitive tool from ClearTax to calculate your advance tax liability:

What is Advance Tax?

Advance tax is income tax paid through multiple installments before the end of financial year, instead of a lump sum payment after the end of the financial year. The provisions related to advance tax are covered under section 207 to section 219 of the Income tax act.

The taxpayer calculates the estimated total income at the beginning of the financial year, thereby estimating his tax liability. The advance tax payments have to be made in fixed percentage through four installments as per the due dates provided by the income tax department.

Why is Advance Tax Important?

Effective tax planning: Advance tax requires the taxpayer to estimate his total income and tax liability in the beginning of the financial year. This helps to analyze his income sources, applicable deductions and formulate tax planning strategies, ultimately helping him minimize the tax liability.
Late payment interest: Payment of advance tax instalments within due dates helps the taxpayer to avoid penalties and late payment interest.
No need of lump sum amount: For taxpayer who have high tax liabilities, advance tax is a comfortable tax payment mechanism as it helps to split the tax payment to four instalment, instead of paying it as a lump sum.

Who Should Pay Advance Tax?

As per section 208 of the Income tax act, Any assessee whose estimated tax liability for the financial year exceeds Rs 10,000, he or she is required to pay advance tax. This provision applies to all taxpayers, salaried individuals, freelancers, and businesses.

Who is not required to pay Advance Tax?

Senior citizens– People aged 60 years or more who do not have income from any business or profession during the financial year are exempt from paying advance tax. However, senior citizens (60 years or more) having business or professional income must pay advance tax.

Advance Tax Due Dates For FY 2025-26

The due date for advance tax payments for FY 2025-26 is given below:

Regular Taxpayers

Instalment	Due Date	Advance Tax Payment Percentage
First Instalment	On or before 15th June 2025	15% of tax liability
Second Instalment	On or before 15th September 2025	45% of tax liability (-) advance tax already paid
Third Instalment	On or before 15th December 2025	75% of tax liability (-) advance tax already paid
Fourth Instalment	On or before 15th March 2026	100% of tax liability (-) advance tax already paid

Note: No interest u/s 234C shall be levied if you have paid advance tax up to 12% in first instalment and up to 36% in second instalment.

Taxpayers Opting Presumptive Taxation

For freelancers, small business owners who have opted for Presumptive Taxation Scheme under sections 44AD & 44ADA – the advance tax due dates are as follows.

Due Date	Advance Tax Payment Percentage
On or before 15th March 2026	100% of advance tax*

*Taxpayers opting for presumptive taxation also have the option to pay all of their tax dues by 31st March. However, any person engaged in business and opted for the presumptive scheme under section 44AE is required to pay advance tax in four instalments on or before the due date as prescribed by the income tax department.

Want a CA to calculate and help pay your advance tax dues? Get in touch with ClearTax!

How to calculate Advance Tax?

Calculating advance tax precisely involves consideration of all your income sources, eligible deductions, the most appropriate regime and estimated tax liability. Here is a step by step guide to ascertain your advance tax liability and instalment amount.

Step 1: Consider your income earned for preceding financial years. Ascertain how much more or less you will earn as compared to preceding years. Carefully consider any new income for the financial year (like capital gains from property sale, gratuity redemption, etc.,

Step 2: Consider all your tax saving investments, and eligible deductions and exemptions like medical insurance premium, home loan interest and principal repayment, HRA, donations, start-up deductions, capital gain exemptions, etc.

Step 3: Make an estimate of your total taxable income.

Step 4: Use our tax calculator to find out the most beneficial tax regime for you. Calculate the tax liability for your estimated income.

Step 5: Pay the required percentage of tax liability as instalments within the applicable due dates. You can change the estimated total income and tax liability during the financial year if any unforeseen income or loss occurs during the financial year.

If your total tax liability exceeds Rs.10,000 for the financial year, you are required to pay advance tax.

The below table will help you understand better.

Particulars	Amount
Gross Total Income	XXX
(-) Deductions Under Chapter VI	XXX
Net Total Income	XXX
Tax Liability	XXX
(+) Surcharge	XXX
(+) Health & Education Cess	XXX
Gross Tax Liability	XXX
(-) TDS/TCS	XXX
Net Tax Liability	XXX

Advance Tax liability will be 15%, 45%, 75%, and 100% of Net Tax Liability for the month of June, September, December, and March respectively.

Illustration

Let's understand the calculation with the help of an example.Ajay is a freelancer earning income from the profession of interior decoration. For the FY 2025-26, Ajay estimates his annual gross receipts at Rs 20,00,000. Ajay estimates his expenses at Rs 12,00,000. Ajay has deposited Rs 40,000 in PPF account. Ajay has also paid Rs 25,000 towards the LIC premium. Further, Ajay has paid Rs 12,000 towards the medical insurance premiums. Professional receipts of Ajay are subject to TDS. Ajay estimates a TDS of Rs 30,000 on certain professional receipts for the FY 2025-26. Besides professional receipts, Ajay estimates an interest of Rs 10,000 on fixed deposits held by him. Ajay’s advance tax liability would be as below:

INCOME ESTIMATION FOR ADVANCE TAX	AMOUNT (Rs)	AMOUNT (Rs)
Income from profession:
Gross receipts	20,00,000
Less: Expenses	12,00,000	8,00,000

Income from other sources:
Interest from fixed deposit		10,000
GROSS TOTAL INCOME		8,10,000
Less: Deduction under section 80C
Contribution to PPF	40,000
LIC premium	25,000
	65,000
Deduction under section 80D	12,000	77,000
TOTAL INCOME		7,33,000

TAX PAYABLE		59,100
Add: Education cess @ 4%		2,364
GROSS TAX LIABILITY		61,464
Less: TDS		30,000
TAX PAYABLE IN ADVANCE (as it exceeds Rs.10,000)		31,464

The advance tax instalment amounts can be calculated as shown below:

ADVANCE TAX PAYMENTS
Due date	Advance tax payable	Amount (Rs)
15th June	15% of Advance tax	4,700
15th September	45% of Advance tax	9,400 (14,100-4700)
15th December	75% of Advance tax	9,400 (23500-14100)
15th March	100% of Advance tax	7900 (31,400-23500)

Note:

1. The above example of tax liability is calculated under the old tax regime since deductions under section 80C are beneficial to the assessee & the said section is available only in the case of the old tax regime.

2. In the above case, the assessee is not liable to pay any advance if the net tax liability is not more than Rs.10,000, after adjusting with the TDS/TCS.

How to Make Advance Tax Payment Online?

Step-1: Visit the e-filing portal of the Income Tax Department of India
Step-2: On the left side of the home page, there is a 'Quick Links' section, click on the 'e-Pay Tax' option. You can also search for 'e-Pay Tax' in the search bar.

Step-3: On this page, enter your PAN and re-enter to confirm it. Then, enter your mobile number and click on ‘Continue’.

Step-4: Now enter the 6-digit OTP received on your mobile number and 'Continue'.

Step-5: Select the first box labelled as ‘Income Tax’ and click on ‘Proceed’
Step-6: Select the ‘Assessment Year’ as 2026-27 and ‘Type of Payment’ as ‘Advance Tax (100)’ and click on 'Continue'.

Step-7: Enter all the tax details.

Step-8: Select the payment method and the bank and press 'Continue'.

Step-9: Preview the challan details and click on ‘Pay Now’. You may also ‘Edit’ these details if required.

Step-10: After completing the payment, you will get an acknowledgement on the next screen. You can see the BSR code and challan serial number on the right side of the challan. Save a copy of this tax receipt for future reference. You will need to enter the BSR code and challan number in your tax return.

How to use Challan Correction Feature?

Follow these steps to make corrections to tax challan:

Log in to the e-filing ITR portal
Select “Challan Correction” from the services tab
Click on "Create Challan Correction Request" on the webpage
Choose the correction type:
- assessment year
- major head
- minor head
Enter either the Assessment Year or Challan Identification Number (CIN)
Depending on your choice, view either specific CIN details or a list of challans for the chosen Assessment Year. Choose the relevant challan for correction.
Input the correct information
Verify the correction using Aadhaar OTP, Digital Signature Certificate (DSC), or Electronic Verification Code (EVC) through net-banking, Demat, or bank account.
Once the correction is successfully verified, you will receive a success message along with a transaction ID. Keep the transaction ID for tracking the status of your correction request.

What is Advance Tax Late Payment Interest?

Interest on Advance Tax u/s 234B

As per Section 234B, you must pay at least 90% of the total taxes as advance tax or TDS/TCS by 31st March. Failure to make advance tax payments will result in an interest @1% on the unpaid amount.

Interest on Advance tax Instalments u/s 234C

If the advance tax instalments are not paid within the specified due dates, interest at 1% per month is payable.

Particulars	Rate of Interest	Period of Interest	Amount on which interest is calculated
If Advance Tax paid by 15th June is less than 15%	1% per month	3 months	15% of Amount* (-) tax paid before June 15
If Advance Tax paid by 15th September is less than 45%	1% per month	3 months	45% of Amount* (-) tax paid before September 15
If Advance Tax paid by 15th December is less than 75%	1% per month	3 months	75% of Amount* (-) tax paid before December 15
If Advance Tax paid by 15th March is less than 100%	1% per month	1 month	100% of Amount* (-) tax paid before March 15

Adjustment of Excess/Shortage Advance Tax Amount

Advance tax is the payment of tax during the financial year in 4 instalments based on the estimated income for the year to avoid lump sum tax payment at the year end. If there is a shortage/excess of tax payment after adjusting advance tax, tax deducted at source & tax collected at source, the assessee would arrive at the tax payable or tax refundable, respectively.

Conclusion

It is important to pay advance tax as and when applicable by the taxpayers. Failure to discharge advance tax liability will attract interest under sections 234C and 234B @ 1% per month each. However, in case of an excess payment of advance tax, the taxpayer will be eligible for a refund.

Other Articles:
1. ITR Filing Last Date
2. What is Self Assessment Tax

Frequently Asked Questions

When should I pay advance tax?

If your tax liability for a year after reducing TDS exceeds Rs 10,000, you will be liable for payment of advance tax.

I have made a mistake in Advance tax challan. How can I rectify the mistake made in Advance tax payment?

The Income Tax Department has recently launched online challan correction feature, where you can make changes to assessment year, major head and minor head. Changes to the assessment year must be made within 7 days of payment and changes to major head and minor head can be made within 30 days of payment.

Is an NRI liable for payment of advance tax?

An NRI, who has an income accruing in India in excess of Rs 10,000, is liable for payment of advance tax.

I am a senior citizen with pension and interest income. Should I pay advance tax?

Resident senior citizens not having income from business or profession are not liable for advance tax.

Will I be penalised if I do not pay advance tax?

Non-payment of advance tax will result in levy of interest under 234B and 234C of the Income-tax Act, 1961.

Can I claim deductions under 80C while estimating income for determining my advance tax?

Yes. You can consider all these deductions while estimating your income for the year for computing your advance tax liability.

What happens if I miss the deadline for payment of the fourth instalment of my advance tax i.e. on 15 March?

You can still go ahead with payment of advance tax on or before the 31 March of the year. Such payment will still be treated as advance tax only.

How do I make an advance tax payment?

Advance tax payment is made using Challan 280, just like any other regular tax payment. You may read our detailed article on online payment of income tax.

Why should advance tax payments be made?

Advance tax payments benefit both the government and the individual/organisation paying it. From the government’s perspective, it provides a continuous flow of income throughout the year. From the individual/organisation’s perspective, it reduces the year-end burden of paying taxes in a lump sum. Non-payment of advance tax could result in the taxpayer being liable to interest under the Income Tax law. Hence, timely payments of advance tax should be made.

How to check advance tax payment status?

To check the status of your advance tax payment challan, go to https://tin.tin.nsdl.com/oltas/index.html. Select CIN (Challan Identification Number) Based View. Then enter the required details being asked for, in order to view the status. You can also check the list of advance tax payments made by logging in to your income tax account at https://www.incometaxindiaefiling.gov.in/home and going to My account -> View Form 26AS (Tax Credit), and entering the financial year and type of view/download.

How to download the advance income tax challan?

To view the advance tax payment challan, go to NSDL website. Select CIN (Challan Identification Number) Based View. Enter the required details, and click on ‘View’. Once the challan details are displayed on the screen, you can either print out the same or save a screenshot. Taxpayers can also download the advance tax payment receipt/challan by visiting the website of the bank through which the advance tax payment was made. An option will be available to download the advance payment receipt.

How to pay advance tax online on ClearTax?

Use the advance tax calculator by ClearTax to simplify your advance tax calculations and click on the ‘Pay on Government Website’ button to make the payment. To know the detailed steps, watch this video.

Can I pay advance tax after the due date?

You must pay advance tax before the financial year ends in 4 instalments: 15th June, 15th September, 15th December and 15th March. If advance tax is not paid according to this schedule, then 1% monthly interest will be levied.

How to pay advance tax for capital gains?

You must pay advance tax on Capital gains. However, it is not possible to accurately predict the amount of capital gain in advance. Therefore, if you earn capital gains after the advance tax due date, you may choose to pay the advance tax in the remaining instalments.

How to pay advance tax through SBI?

Use the advance tax calculator to calculate your exact tax amount and click on the ‘Pay on Government Website’ button > Select ‘challan 280’ > Fill up all the details (watch this video for complete details) > Under net banking, select ‘SBI’ and make the payment.

How do you calculate advance tax?

Estimate your total income from all sources earned from 1st April- 31st March of the financial year for which you are doing the advance tax calculations. Subtract all eligible deductions and exemptions. Compute tax on such income as per the tax regime you opted for. Reduce the amount of tax paid by way of TDS/TCS. You get your advance tax liability (if the amount of tax calculated is more than Rs. 10,000).

How do we make advance tax payments for incomes which cannot be predicted?

Income from capital gains, income from lotteries & such other incomes cannot be estimated by assessee. Therefore, the assessee needs to pay tax on such income in the remaining instalments, or if no instalment is due, pay the tax late by 31st March to avoid interest.

What is the minimum amount of tax that is required to be paid as an advance tax by 31st March?

At least 90% of your total tax liability as per the estimated income is required to be paid by the assessee. Failing to which results in interest at the rate of 1% on the unpaid amount till the date of payment.

How is the interest calculated for non-payment of advance tax within the due date?

Tax is calculated at the rate of 1% per month under section 234C. Let’s say if the tax paid is less than 15% of total tax liability by the 15^th of June, then 1% per month for three months is applied on the unpaid amount of 15% of total tax liability.

What is the % of tax liability to be paid by 15th September?

You have to pay 45% of the tax liability by 15th September.

Do salaried employees pay advance tax?

Since tax is deducted in the form of TDS, salaried employees usually don't have to pay advance tax. In rare cases, a salaried employee may need to pay advance tax directly—this happens when the total TDS deducted during the financial year is less than their total estimated tax liability.

How to calculate estimated total income and tax liability for advance tax?

It is important to know how much could be your approximate tax liability to pay advance tax in instalment. You can consider how much you earned in preceding years, possible changes in income for the current year (any new income like property sale or potential business losses), and eligible deductions for you to estimate your total taxable income and tax liability.

About the Author

CA Mohammed S Chokhawala

Content Writer

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

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