3. Submit Details
Submit the details of your taxable income and any available deduction(s).
How it’s done
Steps to Calculate Your Advance Tax
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2. Purchase Plan
Choose & buy the advance tax calculation plan that’s right for you.
4. Calculation & Payment
Our team of CAs will help you calculate your advance tax liability and pay the same.
Advance Tax Filing Plan
Advance Tax Calculation & Filing
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- CA Assisted Tax Calculation
- Whatsapp Call / Email Support
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- Advance Tax Calculation other than salaried individual
- Query Session up to 60 mins
- CAAssisted Tax Calculation
- Whatsapp Call / Email Support
Benefits ofAdvance Tax
Reduces Stress
Timely payment of Advance Tax will significantly reduce your stress as a taxpayer and help avoid receiving default notices from tax authorities.
No Surprise Liabilities
By paying tax in advance, you don’t have to worry about a money crunch due to tax payments at the last moment.
Prevents Default
By paying advance tax, you can avoid default on tax payments and thus avoid unforeseen penalties or interest payments.
Refund of Excess
At the end of the year, if you have paid more tax than you were required to, you can claim a refund of the excess amount.
Advance Tax Information
Advance Tax - the Basics
What is Advance Tax?
Advance Tax is the income tax paid by the taxpayer in advance instead of making a lump sum payment at the end of the financial year. So, it is the tax that you pay as you earn. You, as a taxpayer, have to pay the amount in installments as per the due date given by the income tax department.
You are generally required to pay advance tax if your total tax liability, after accounting for TDS, exceeds INR 10,000 in a financial year. This rule applies to all categories of taxpayers, including freelancers, professionals, salaried individuals, and senior citizens.
Who Is Liable To Pay Advance Tax?
As per the Income Tax Act, if your estimated tax liability for the financial year is more than Rs. 10,000, you are liable to pay advance tax. This applies to individuals, Hindu Undivided Families (HUFs), companies, and firms.
Penalties for Advance Tax?
The Income Tax Department can charge interest under sections 234B and 234C of the Income Tax Act. The interest rate is 1% per month or part of the month for the period of delay.
Advance Tax Due Date
- 15th June - 15% of the estimated tax liability.
- 15th September - 45% of the estimated tax liability, less the amount paid in the first installment.
- 15th December - 75% of the estimated tax liability, less the amount paid in the first and second installments.
- 15th March - 100% of the estimated tax liability, less the amount paid in the first three installments.
Due Date for Depositing Advance Tax!
| Due Date | Advance Tax Payment Percentage |
|---|---|
| On or before 15th June | 15% of advance tax |
| On or before 15th September | 45% of advance tax (-) advance tax already paid |
| On or before 15th December | 75% of advance tax (-) advance tax already paid |
| On or before 15th March | 100% of advance tax (-) advance tax already paid |
Ways to Calculating of Advance Tax
You must accurately estimate and pay Advance Tax to avoid hefty penalties. To calculate Advance Tax, you need to calculate your estimated income for the financial year. You can do this by following these steps:
Make an estimate of your total income for the year by taking into account all sources of revenue, including salary, rental income, business profits, capital gains and other sources.
Calculate the tax liability using the applicable tax rates and deductions on the estimated income.
Subtract the deducted TDS amount or the TDS that will be deducted according to the tax slab that’s applicable for you.
You will get the advance tax payable once you deduct TDS from the tax liability.
You must pay your advance taxes on time, according to the prescribed instalment schedule set by the Income Tax Department. Failure to do so may result in penalties or tax liabilities.
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Frequently Asked Questions
Advance tax is the system of paying income tax in installments during the financial year, rather than making a lump sum payment at the end of the year. It is applicable to individuals, self-employed professionals, and businesses whose tax liability exceeds a certain threshold.
If your tax liability for a year after reducing TDS exceeds INR 10,000, you will be liable to pay advance tax. This applies to individuals, Hindu Undivided Families (HUFs), companies, and firms.
Advance tax is calculated by estimating the total income for the financial year and applying the applicable tax rates. Deductions and exemptions are considered while calculating the taxable income. The advance tax liability is determined by dividing the estimated tax by the due dates specified by the Income Tax Department.
Non-payment of advance tax will result in interest liability according to the provisions of Sections 234B and 234C of the Income-tax Act, 1961. The interest rate is 1% per month or part of the month for the period of delay.
You can pay advance tax through various modes such as online banking, net banking, credit or debit card, NEFT, RTGS, or by visiting authorised banks. Get in touch with us if you need assistance with the calculation and payment of advance tax!
No, unlike income tax returns, advance tax payments cannot be revised once made. However, if there are changes in your income estimate or tax liability, you can adjust the subsequent installment payments to align with the revised estimates.
No specific exemptions or deductions are available exclusively for advance tax calculations. The exemptions and deductions allowed under the regular income tax provisions are considered while estimating the taxable income for calculating the advance tax liability.
Yes, you can pay the entire tax liability at once if you don’t prefer to pay in installments. If you choose this option, ensure that you make the payment before the specified due date to avoid any interest or penalties.
Yes, if you have paid more advance tax than your actual tax liability, you can claim a refund while filing your income tax return. The Income Tax Department will refund the excess amount to you after processing your return.
Resident senior citizens not having income from business or profession are not liable for advance tax.
If an NRI has more than INR 10,000 of income accruing in India they are required to pay advance tax.
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