Advance Tax Calculator India — FY 2025-26

Q: Who needs to pay advance tax in India?

Any taxpayer — individual, HUF, firm, or company — whose estimated tax liability for the financial year is ₹10,000 or more (after deducting TDS/TCS) must pay advance tax under Section 208. Senior citizens (60+) with no business or professional income are exempt under the proviso to Section 207.

Q: What are the advance tax due dates for FY 2025-26?

For FY 2025-26, advance tax is due in 4 quarterly instalments: 15 June 2025 (15%), 15 September 2025 (45% cumulative), 15 December 2025 (75% cumulative), and 15 March 2026 (100%). Taxpayers under presumptive taxation (Section 44AD/44ADA) pay the entire amount by 15 March.

Q: What is the interest penalty for not paying advance tax?

Section 234B charges 1% per month simple interest on the total shortfall if advance tax paid is less than 90% of assessed tax (from April to assessment date). Section 234C charges 1% per month for 3 months on each quarterly shortfall (1 month for Q4). Both are simple interest, and part of a month counts as a full month.

Q: How do I pay advance tax online?

Pay through the e-Pay Tax portal (eportal.incometax.gov.in) using Challan ITNS 280. Select 'Advance Tax (100)', enter PAN and AY 2026-27, and pay via net banking, UPI, debit card, or NEFT/RTGS. Save the challan receipt with BSR code for ITR filing.

Q: Are salaried employees required to pay advance tax?

If your employer deducts TDS on your full salary and you have no other income, advance tax is usually not needed. However, if you have additional income like FD interest, capital gains, or rental income where TDS is not fully deducted and the net tax gap exceeds ₹10,000, advance tax is required.

Calculate your advance tax instalments with quarterly due dates, compute interest under Section 234B and 234C for missed payments, and check if you even need to pay advance tax based on your income and TDS. Covers the ₹10,000 threshold, senior citizen exemption, and presumptive taxation rules. Updated for FY 2025-26.

Calculate your quarterly advance tax instalments for FY 2025-26

Estimated annual tax liability

₹

Your total estimated income tax for FY 2025-26 (before TDS credit)

TDS already deducted / expected

₹

TDS deducted by employer, bank, or other deductors during the year

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How to Use This Calculator

Advance Tax Schedule tab

Enter your estimated annual tax liability and the TDS already deducted (or expected to be deducted) during the year. The calculator shows whether you need to pay advance tax and, if so, breaks down the quarterly instalments with due dates and cumulative amounts for FY 2025-26.

Interest 234B/234C tab

Enter the total tax liability and the advance tax actually paid in each quarter. The calculator computes interest under Section 234C (deferment interest per quarter) and Section 234B (non-payment interest from April). Use this to see how much penalty interest you would owe for missed or delayed payments.

Do I Need Advance Tax? tab

Enter your income from salary, FD interest, capital gains, rental income, and TDS deducted. The calculator estimates your total tax under the New Regime, subtracts TDS, and gives a clear yes/no verdict on whether you need to pay advance tax. Senior citizens (60+) with no business income are automatically marked as exempt.

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The Formula

Advance tax is calculated based on your estimated income and the prescribed quarterly schedule under Section 211:

Advance Tax Due:
Net Advance Tax = Estimated Tax Liability − TDS/TCS Credit

Quarterly Schedule (FY 2025-26):
Q1 (by 15 June): 15% of net tax
Q2 (by 15 Sep): 45% cumulative (pay 30% in Q2)
Q3 (by 15 Dec): 75% cumulative (pay 30% in Q3)
Q4 (by 15 Mar): 100% cumulative (pay 25% in Q4)

Section 234C Interest (Deferment):
Per quarter shortfall × 1% × 3 months (Q1-Q3)
Q4 shortfall × 1% × 1 month

Section 234B Interest (Non-Payment):
Applies if total advance tax paid < 90% of assessed tax
(Assessed Tax − Advance Tax Paid) × 1% × months from April to assessment

Threshold: Advance tax required only if net tax liability ≥ &rupee;10,000 (Section 208)

Interest under both sections is simple interest (not compound). A part of a month is treated as a full month for interest calculation purposes.

Example

Rahul — Mumbai IT professional with FD and rental income

Rahul earns &rupee;18 lakh salary, &rupee;1.2 lakh FD interest, and &rupee;2.4 lakh rental income. His employer deducts &rupee;1.8 lakh TDS on salary, and the bank deducts &rupee;12,000 TDS on FD interest. He needs to check if advance tax applies and plan his payments.

Step 1: Total income and tax

Salary&rupee;18,00,000

FD interest&rupee;1,20,000

Rental income&rupee;2,40,000

Gross total income&rupee;21,60,000

Standard deduction−&rupee;75,000

Taxable income&rupee;20,85,000

Step 2: Tax calculation (New Regime)

Tax on &rupee;20,85,000&rupee;3,43,000

Cess (4%)&rupee;13,720

Total tax&rupee;3,56,720

Step 3: TDS credit and advance tax due

TDS on salary&rupee;1,80,000

TDS on FD&rupee;12,000

Total TDS&rupee;1,92,000

Net tax after TDS&rupee;1,64,720

Step 4: Quarterly advance tax schedule

Q1 (15 Jun) — 15%&rupee;24,708

Q2 (15 Sep) — 30%&rupee;49,416

Q3 (15 Dec) — 30%&rupee;49,416

Q4 (15 Mar) — 25%&rupee;41,180

Total advance tax&rupee;1,64,720

Since Rahul's net tax after TDS is &rupee;1,64,720 (above the &rupee;10,000 threshold), he must pay advance tax in 4 quarterly instalments. Missing payments would attract 1% per month interest under Sections 234B and 234C.

FAQ

Who needs to pay advance tax in India? ▼

Any taxpayer — individual, HUF, firm, or company — whose estimated tax liability for the financial year is &rupee;10,000 or more (after deducting TDS/TCS) must pay advance tax under Section 208. This typically applies to freelancers, business owners, professionals, and salaried individuals with significant non-salary income (FD interest, capital gains, rental income). Senior citizens (60+) with no business or professional income are exempt from advance tax under the proviso to Section 207.

What are the advance tax due dates for FY 2025-26? ▼

For FY 2025-26 (AY 2026-27), advance tax must be paid in 4 quarterly instalments: 15 June 2025 (15% of total tax), 15 September 2025 (45% cumulative), 15 December 2025 (75% cumulative), and 15 March 2026 (100%). If a due date falls on a Sunday or public holiday, the payment is due on the next working day. For taxpayers under presumptive taxation (Section 44AD/44ADA), the entire advance tax is due in a single instalment by 15 March.

What is the interest penalty for not paying advance tax? ▼

Two types of interest apply: Section 234B charges 1% per month (simple interest) on the total shortfall if your advance tax paid is less than 90% of the assessed tax. This runs from 1 April of the assessment year until the date of assessment. Section 234C charges 1% per month for deferment — if any quarterly instalment falls short of the prescribed cumulative percentage, interest is charged for 3 months on the shortfall (1 month for Q4). Both are calculated as simple interest, and a part of a month counts as a full month.

How do I pay advance tax online? ▼

Pay advance tax online through the e-Pay Tax portal on the Income Tax Department website (eportal.incometax.gov.in). Select Challan No. ITNS 280, choose "Advance Tax (100)" as the type of payment, enter your PAN, assessment year (2026-27 for FY 2025-26), and pay via net banking, UPI, debit card, or NEFT/RTGS. After payment, save the challan receipt with BSR code and serial number — you will need these when filing your ITR. You can also pay through authorised bank branches.

Are salaried employees required to pay advance tax? ▼

If your employer deducts TDS on your entire salary and you have no other income, you typically do not need to pay advance tax (since your net tax liability after TDS would be nil or below &rupee;10,000). However, if you have additional income such as FD interest, capital gains, rental income, or freelance income where TDS is not fully deducted, the net tax gap may exceed &rupee;10,000 — in which case advance tax is required. Many salaried professionals with investments in equity, mutual funds, or real estate fall into this category.

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