Who must pay advance tax
You must pay tax during the year — not just at filing — if your tax after TDS is ₹10,000 or more. This typically applies to:
- Freelancers, consultants and business owners.
- Salaried people with significant interest, rental income or capital gains that TDS does not cover.
- Investors with large capital gains from shares, mutual funds or property.
Exception: resident senior citizens (60+) without business or professional income do not have to pay advance tax.
Due dates and amounts
| Due date | Cumulative tax due | On ₹1.5 lakh payable |
|---|---|---|
| 15 June | 15% | ₹22,500 |
| 15 September | 45% | ₹45,000 |
| 15 December | 75% | ₹45,000 |
| 15 March | 100% | ₹37,500 |
Businesses and professionals under the presumptive scheme can pay the whole amount by 15 March instead.
Interest if you pay late or too little
- Deferment of instalments: 1% a month (for 3 months) on any shortfall against the 15 June, 15 September and 15 December targets, and 1% for one month on the 15 March shortfall. Paying 12% by June and 36% by September counts as on time for those two instalments.
- Non-payment: if you have paid less than 90% of your tax by 31 March, 1% a month on the shortfall from April until you pay.
If you skip all four instalments and pay everything when filing in July, interest on ₹1.5 lakh adds up to roughly ₹13,500 (about ₹7,600 for deferred instalments plus ₹6,000 for April–July) — money you lose for nothing.
How to pay
Pay online through the Income Tax e-filing portal's e-Pay Tax service (or through net banking), choosing the tax year and the "advance tax" type of payment. Keep the challan details: you need them when filing your return.
Getting your estimate right
Estimate your full-year income from all sources and use the income tax calculator to find the tax, then subtract TDS shown in Form 26AS/AIS. If income changes mid-year — a large capital gain, for example — adjust the next instalments. For gains from shares or mutual funds, see the capital gains tax calculator.