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Advance tax calculator (India)

  

A taxpayer who is not on presumptive taxation. Interest under sections 234B and 234C for a shortfall is about 1% a month and is not added here. Salaried people with no other income usually need no advance tax because TDS covers it.

2.5 lakhInclude cess. Use the income tax calculator if unsure.

50 thousand

Advance tax due this year

₹2,00,000

Paid in four instalments. The percentages are cumulative, so each instalment is the difference.

When to pay

  • By 15 June (15% in total)₹30,000
  • By 15 September (45% in total)₹60,000
  • By 15 December (75% in total)₹60,000
  • By 15 March (100% in total)₹50,000

How advance tax works, in plain terms

Income tax is meant to be paid as you earn, not in one lump after the year ends. Salaried people get this through TDS. If you earn without a payer deducting tax, the law expects you to pay in four instalments, and that is advance tax.

The instalments are cumulative. By 15 June you should have paid 15% of the year's tax. By 15 September the running total should be 45%, by 15 December 75%, and by 15 March 100%. So the amounts are uneven: the first is small, the middle two are larger, and the last is whatever is left. Many people get this wrong by splitting the bill into four equal parts.

Take a freelancer who expects ₹2.5 lakh of tax in the year and has ₹50,000 already cut as TDS. The tax still to pay is ₹2 lakh. The instalments are ₹30,000 in June, ₹60,000 in September, ₹60,000 in December and ₹50,000 in March. If the income turns out higher in the last quarter, the final instalment simply grows.

You do not need to be exact. The test is whether you paid at least 90% of the final tax by 31 March, counting TDS. Underpaying costs 1% a month in interest, which is mild compared with a notice, but it adds up. A practical habit is to move a fixed percentage of every client payment into a separate account and pay from there on the due dates.

Sources

What this calculator does not account for

  • Interest under sections 234B and 234C.
  • Presumptive taxation, where one 15 March payment is allowed.
  • Your actual slab, surcharge and rebates.

How this is calculated

Formula: Instalments from cumulative shares

instalment =tax due × cumulative share − paid so far

What the symbols mean

  • tax dueYour estimated tax for the year minus TDS and TCS already deducted.
  • cumulative share15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March.

Good to know

  • If what is left after TDS is under ₹10,000, no advance tax is needed.
  • Estimate the tax itself with the income tax calculator.

Read the full methodologyFound an error? Contact us

Worked examples

Each example is worked out by the same code as the calculator above.

₹2.5 lakh tax, ₹50,000 TDS

Tax to pay in advance is ₹2,00,000. Instalments: ₹30,000 by 15 June, ₹60,000 by 15 September, ₹60,000 by 15 December, ₹50,000 by 15 March.

Salaried with ₹6,000 left after TDS

Under ₹10,000, so no advance tax is due. Pay the balance when you file the return.

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Questions

Who has to pay advance tax?

Anyone whose tax for the year, after TDS, comes to ₹10,000 or more. That mostly means freelancers, business owners, landlords and people with large capital gains or interest income.

Do salaried people need to pay it?

Usually not, because the employer deducts TDS from salary. It matters only if you have other income, such as rent, share profits or a second job, that pushes the unpaid tax over ₹10,000.

What if I miss a due date?

Interest of 1% per month is charged under sections 234B and 234C on the shortfall. You can still pay late and the clock for that instalment stops from the day you pay.

Is there an easier route for small businesses?

Taxpayers on presumptive taxation under section 44AD or 44ADA can pay the whole advance tax in one go by 15 March.