Income tax is meant to be paid as you earn, not only at the end of the year. Advance tax is the mechanism for this. If you have income that is not fully covered by tax deducted at source (TDS), you may have to pay part of your tax in instalments during the year.
Who must pay advance tax?
You must pay advance tax if your estimated tax liability for the year, after deducting TDS, is ₹10,000 or more. This commonly applies to business owners, professionals, and individuals with substantial interest, rent, dividend or capital-gains income.
Due dates and percentages
| Due date | Cumulative advance tax payable |
|---|---|
| On or before 15 June | At least 15% of the estimated tax |
| On or before 15 September | At least 45% |
| On or before 15 December | At least 75% |
| On or before 15 March | 100% |
Example. If your estimated tax after TDS is ₹1,00,000, you should have paid ₹15,000 by 15 June, a cumulative ₹45,000 by 15 September, a cumulative ₹75,000 by 15 December and the full ₹1,00,000 by 15 March.
Special cases
- Presumptive taxpayers (those who opt for the presumptive scheme for small businesses or professionals) pay the entire advance tax in a single instalment on or before 15 March.
- Resident senior citizens (aged 60 or above) who do not have income from business or profession are not required to pay advance tax.
What happens if you miss a date?
Shortfall or delay in paying advance tax attracts interest. It is therefore better to estimate your income every quarter and pay in time. If your income changes during the year, revise the estimate and adjust the next instalment.
Does the Income-tax Act, 2025 change this?
No. The instalment dates and percentages are unchanged, although the section numbers have changed. See what changes under the Income-tax Act, 2025.
This article is a general overview and not professional advice. Rules, dates and extensions may change. Please consult a Chartered Accountant for your specific case.
This article gives general information only and is not professional advice. Rules, rates and due dates change from time to time. Please consult a Chartered Accountant before acting on any tax, GST or legal matter.