How the advance tax installment schedule works
Advance tax is income tax paid in installments during the financial year, rather than as one lump sum after it ends. First, work out your net advance tax payable: your estimated total tax liability for the year, minus any TDS/TCS already deducted or expected to be deducted on your behalf.
If that net amount is ₹10,000 or less, you don't need to pay any advance tax at all — the law only requires it once your liability after TDS crosses the ₹10,000 threshold.
If you're above the threshold and follow the regular schedule (most taxpayers), you pay in four installments, each calculated as an incremental amount on top of what's already been paid:
| Due date | Cumulative % of net tax | Incremental amount due |
|---|---|---|
| On or before 15 June | 15% | 15% of net tax |
| On or before 15 September | 45% | 30% of net tax |
| On or before 15 December | 75% | 30% of net tax |
| On or before 15 March | 100% | 25% of net tax |
If you're a presumptive taxpayer under Section 44AD (business income) or Section 44ADA (professional income), the rules are simpler — you can pay 100% of your net advance tax in a single installment, due on or before 15 March.
Shunya's CA team can help you estimate your liability accurately and plan your advance tax installments so you avoid interest under Sections 234B/234C.
Talk to a CA →Who needs to pay advance tax?
Anyone — salaried, self-employed, or a business — whose estimated tax liability after TDS/TCS exceeds ₹10,000 for the financial year is required to pay advance tax. If your TDS already covers your liability, or your net tax after TDS is ₹10,000 or less, you don't need to pay advance tax.
What happens if I miss an installment?
You become liable for interest under Section 234B and 234C, charged at 1% per month (or part of a month) on the shortfall. The exact interest calculation depends on how much was paid by each due date and for how many months it stayed unpaid, so it's more involved than this calculator covers — but the key takeaway is that missing or underpaying an installment isn't free.
Do presumptive taxpayers follow the same 4-installment schedule?
No. Taxpayers who have opted for the presumptive taxation scheme under Section 44AD or 44ADA can pay their entire advance tax liability in a single installment by 15 March, instead of following the four-installment schedule that applies to everyone else.
Does Shunya help with advance tax planning?
Yes — Shunya's CA team can help you estimate your annual tax liability, plan your advance tax installments accurately, and avoid interest under Sections 234B/234C. Book a free consultation to get started.
This tool is for quick estimation only and is not a substitute for professional tax advice. For your specific situation, consult a practicing CA.
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