Question 1

What is advance tax and who needs to pay it?

Accepted Answer

Advance tax is the income tax paid in installments during the financial year rather than as a lump sum at year-end. You must pay advance tax if your **total tax liability exceeds Rs 10,000** in a financial year. This typically applies to freelancers, professionals, business owners, and anyone with income sources where TDS is not deducted.

Question 2

What are the quarterly due dates for advance tax?

Accepted Answer

Advance tax is due in four installments: **June 15** (15% of tax), **September 15** (45% cumulative), **December 15** (75% cumulative), and **March 15** (100%). For those under presumptive taxation (Section 44ADA/44AD), you can pay the entire amount by March 15 in a single installment.

Question 3

What happens if I miss an advance tax deadline?

Accepted Answer

Missing deadlines attracts interest under **Section 234C** (1% per month on quarterly shortfall) and **Section 234B** (1% per month if less than 90% is paid by March 31). For example, missing Q1 deadline attracts 9 months of interest. Use this calculator to see your exact penalty amount.

Question 4

How does Section 44ADA benefit freelancers for advance tax?

Accepted Answer

Under Section 44ADA (for professionals up to Rs 50 lakh income), only **50% of your income is deemed taxable**, and you can pay 100% of advance tax in a single installment by March 15. This means no quarterly payments required, reducing compliance burden significantly.

Question 5

Can TDS credits reduce my advance tax liability?

Accepted Answer

Yes! TDS already deducted by clients or employers counts toward your total tax payment. If your TDS covers 90% or more of your tax liability, you won't attract Section 234B interest. This calculator factors in your TDS to show the net remaining liability.

Question 6

How accurate is this advance tax calculator?

Accepted Answer

This calculator uses current FY 2024-25 tax slabs and accurately computes tax under both old and new regimes, presumptive schemes (44ADA/44AD), and interest penalties. For complex situations with multiple income sources or capital gains, consult a [CA for precise computation](/book-appointment).

Advance Tax Quarterly Calculator with Interest Penalty

Related Calculators

Income Tax Calculator

Creator Income Tax Calculator

Old vs New Tax Regime Comparison Calculator

Freelancer Advance Tax Calculator

Section 44ADA Presumptive Taxation

Frequently Asked Questions