Advance Tax Payment Guide 2025: Dates, Calculator & How to Pay Online
Step-by-step guide to paying advance tax online with due dates and penalty calculation
- Threshold: Pay advance tax if your tax liability exceeds Rs.10,000 after TDS deductions
- 4 Deadlines: June 15 (15%), Sept 15 (45%), Dec 15 (75%), March 15 (100%)
- Penalty: 1% interest per month under Section 234B/234C for late or missed payments
- Senior Citizen Exemption: Those 60+ with no business income are exempt from advance tax
What is Advance Tax?
Advance tax is the income tax paid in installments during the financial year instead of paying a lump sum at year-end. It's also known as "pay-as-you-earn" tax.
Applicable to:
- Salaried individuals with additional income
- Freelancers and consultants
- Business owners and professionals
- Investors with capital gains
- Anyone with income from house property
Advance Tax Payment Dates FY 2025-26
Mark these critical dates in your calendar to avoid interest penalties
(Pay additional 30%)
(Pay additional 30%)
(Pay remaining 25%)
Important Reminder
The March 15 strategy: If you missed earlier deadlines, pay 100% of your estimated tax by March 15 to avoid Section 234C interest on the final installment. For freelancers under Section 44ADA presumptive taxation, you can pay your entire advance tax in a single installment on March 15 without any penalty.
How to Calculate Advance Tax
Estimate Annual Income
Calculate total income from all sources: salary, business, capital gains, etc.
Calculate Tax Liability
Apply tax rates as per your chosen regime (old/new)
Deduct TDS/TCS
Subtract tax already deducted at source
Calculate Installments
Apply percentages: 15%, 45%, 75%, 100%
Installment Schedule:
How to Pay Advance Tax Online
Step 1: Visit Income Tax Portal
Go to https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Step 2: Select Challan Type
Choose Challan 280 for advance tax payment
Step 3: Fill Details
Enter PAN, assessment year, address, and tax amount
Step 4: Payment Mode
Pay via net banking, debit card, or UPI
Step 5: Save Receipt
Download and save BSR Code receipt for ITR filing
Penalty for Non-Payment
Section 234B
1% per month on unpaid tax from April 1 to date of payment
Section 234C
1% per month for shortfall in each installment
Important Points to Remember
- ✓Senior citizens (60+ years) with no business income are exempt from advance tax
- ✓Advance tax can be paid in lump sum before March 31 instead of installments
- ✓Revise estimates if income increases/decreases during the year
- ✓Save all payment receipts for ITR verification
Use Our Income Tax Calculator
Not sure how much advance tax to pay? Use our free income tax calculator to estimate your tax liability for FY 2025-26. Freelancers can also check the freelancer advance tax calculator for quarterly payment schedules.
Conclusion
Paying advance tax on time helps avoid penalties and ensures smooth tax compliance. Plan your cash flows to meet advance tax deadlines, and always maintain records of payments for future reference.
Related Calculators
Income Tax Calculator
Compare old vs new tax regime and calculate your income tax liability
Freelancer Advance Tax Calculator
Calculate quarterly advance tax with Section 44ADA single payment option and interest calculation
Section 44ADA Presumptive Taxation
Calculate presumptive income for professionals with 50% deemed profit and single advance tax payment benefit