What are the quarterly advance tax due dates and percentage limits?

Advance tax must be paid in 4 quarterly installments: 15% of estimated tax by 15th June, 45% cumulative by 15th September, 75% cumulative by 15th December, and 100% cumulative by 15th March. Taxpayers under presumptive scheme Section 44AD/44ADA pay 100% in a single installment by 15th March.

How is Section 234C interest penalty calculated?

Section 234C levies simple interest at 1% per month for deferment of quarterly installments. Interest is charged on the shortfall between the required mandatory percentage and actual tax paid for 3 months each for Q1, Q2, and Q3, and for 1 month for Q4. No 234C interest applies if payment reaches 12% by June 15 or 36% by September 15.

How is Section 234B interest penalty calculated?

Section 234B charges 1% per month simple interest if total advance tax paid before 31st March is less than 90% of assessed net tax liability. Interest is calculated from 1st April of the assessment year until the date of actual tax payment or ITR filing.

Do salaried employees need to pay advance tax?

Salaried employees generally do not need to pay advance tax if their employer deducts full TDS under Section 192. However, if a salaried employee has extra income from interest, capital gains, dividend, or rental income where TDS was not deducted, and net tax liability exceeds Rs 10,000, advance tax must be paid.

How to pay advance tax online?

Advance tax can be paid online through the Income Tax e-filing portal (e-Pay Tax service) or net banking using Challan 280 (Minor Head 100: Advance Tax) under Assessment Year 2026-27 or FY 2025-26.

What happens if capital gains occur after advance tax due dates?

If unexpected capital gains or dividend income arise after the 15th June or 15th September due dates, no Section 234C interest penalty applies provided the taxpayer pays full advance tax on such capital gains in the remaining subsequent installments or by 31st March.

Is advance tax paid credited during ITR filing?

Yes. Advance tax payments reflect in Form 26AS and Annual Information Statement (AIS). During ITR filing, total advance tax paid is deducted from gross tax payable.

Can advance tax be paid after 15th March?

Any tax paid on or before 31st March of the financial year is treated as advance tax. Payments made after 31st March are treated as self-assessment tax under Section 140A.

What is the penalty for not paying advance tax at all?

Failing to pay advance tax attracts interest under Section 234B (1% per month for overall shortfall under 90%) and Section 234C (1% per month for quarterly deferments), adding 3% to 12% in extra interest cost upon filing ITR.

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Advance Tax Calculator: Calculate Quarterly Due Dates & Interest

What Is Advance Tax in India?

Advance tax is income tax paid in quarterly installments during the financial year in which income is earned, rather than as a lump sum payment at the time of filing the Income Tax Return (ITR).

Under Section 208 of the Income Tax Act 1961, per official regulations from the Income Tax Department of India, every taxpayer whose estimated net tax liability for the year (after deducting TDS and TCS) is Rs 10,000 or more must pay advance tax.

Resident senior citizens aged 60 years or above who do not have any income from business or profession are fully exempt from paying advance tax under Section 207.

Quarterly Advance Tax Due Dates & Mandatory Thresholds

Under Section 211 of the Income Tax Act, advance tax must be remitted across four quarterly installments for regular taxpayers, or in a single installment for presumptive taxpayers.

Quarterly due dates, mandatory percentage targets, and safe harbor thresholds under Section 211.
Installment Due Date	Mandatory Cum. % Target	Safe Harbor Threshold %	Applicability & Notes
15th June	15% of Net Tax	12% of Net Tax	First quarter installment; 234C interest waived if 12% paid
15th September	45% of Net Tax	36% of Net Tax	Second quarter cumulative; 234C interest waived if 36% paid
15th December	75% of Net Tax	75% of Net Tax	Third quarter cumulative target
15th March	100% of Net Tax	100% of Net Tax	Final quarter cumulative target (100% for Sec 44AD/44ADA)

Section 234C Deferment Interest Formula

Section 234C levies simple interest at 1% per month for deferment of quarterly advance tax installments.

Section 234C Deferment Interest Formula

Interest = Shortfall Amount x 1% x Months (3 Months for Q1-Q3, 1 Month for Q4)

Where Shortfall = Mandatory Target % of Net Tax minus Cumulative Advance Tax Paid by the due date.

Section 234B Default Interest Formula

Section 234B charges simple interest at 1% per month if total advance tax paid before 31st March is less than 90% of assessed net tax liability.

Section 234B Default Interest Formula

Section 234B Interest = (Assessed Tax - Advance Tax Paid) x 1% x Number of Months

Calculated from 1st April of the assessment year until the date of ITR filing or self-assessment tax payment.

Estimating Annual Income Tax Liability?

Compare New vs Old Tax Regime slabs and calculate gross tax payable with our Income Tax Calculator.

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Salaried vs Freelancer vs Presumptive Taxpayers

Advance tax rules apply differently depending on your employment type and tax scheme:

Salaried Employees: If employer deducts 100% TDS on salary, no advance tax is needed. However, if interest, rental, or stock market gains create tax due over Rs 10,000, advance tax must be paid.
Freelancers & Professionals: Must estimate net income and pay advance tax in 4 quarterly installments (15%, 45%, 75%, 100%).
Presumptive Taxation (Sec 44AD / 44ADA): Small businesses and professionals under presumptive schemes can pay 100% of advance tax in a single installment on or before 15th March.

Calculate rental tax offsets with our Rental Income Tax Calculator or estimate property transaction tax with our Property Tax Estimator.

How to Use This Advance Tax Calculator

Select Tax Regime Type: Choose Regular Taxpayer or Presumptive Scheme (Section 44AD/44ADA).
Input Estimated Tax & TDS: Enter gross estimated tax liability and subtract total TDS/TCS credits.
Input Paid Challans & Analyze: Enter actual paid amounts across Q1-Q4 to calculate Section 234C and 234B interest penalties.

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Frequently Asked Questions

Under Section 208 of the Income Tax Act, any taxpayer (salaried, self-employed, freelancer, business, or company) whose estimated net tax liability for the financial year after deducting TDS/TCS is Rs 10,000 or more must pay advance tax.

Disclaimer: Advance tax calculations and Section 234B/234C interest estimates are for guidance based on the Income Tax Act 1961. Final tax liability and interest charges depend on actual Income Tax Department assessment and Form 26AS verification. Consult a qualified Chartered Accountant at ca.fermor.in before submitting Challan 280 tax payments.