Think advance tax is a year-end scramble? Think again. Taxpayers who are required to pay advance tax generally pay it during the financial year instead of waiting until the end.
The Easy Return Advance Tax Calculator helps you estimate how much advance tax may be payable and when the instalments are due. Enter your estimated income, applicable deductions and tax payments to calculate your estimated liability under the old tax regime and new tax regime.
Review your advance tax instalments, account for relevant TDS/TCS credits and plan payments before the applicable due dates. No complicated spreadsheets — just a clearer tax estimate.
Estimated results only. Actual advance tax liability depends on applicable law, income details and tax credits.
What Is Advance Tax?
Advance tax is income tax paid during the financial year in which the income is earned, rather than paying the entire amount after the year ends.
Under the advance tax system, eligible taxpayers estimate their taxable income, calculate the expected income-tax liability and pay the required amount in instalments before the prescribed deadlines.
This is commonly described as the "pay as you earn" system. Instead of paying one large tax amount at year-end, you pay portions of your estimated tax during the year.
Advance tax can apply to income from salary, business, freelancing, capital gains, rent, interest and other taxable sources, subject to applicable rules.
Estimate
Calculate your expected taxable income and estimated tax liability for the relevant year. Consider applicable deductions, rebates, tax credits and the selected tax regime.
Plan Instalments
Work out the instalments required under the applicable schedule. Most taxpayers follow the four due dates in June, September, December and March.
Pay on Time
Pay the required cumulative advance tax amount on or before each applicable due date. Keep the payment challan details for future reference.
When Is Advance Tax Applicable?
Advance tax is generally payable when your estimated tax payable for the year is ₹10,000 or more, after accounting for relevant tax credits such as TDS/TCS.
For FY 2026–27, this threshold is provided under Section 404 of the Income-tax Act, 2025 (earlier Section 208 of the Income-tax Act, 1961).
Exception: A resident individual aged 60 years or above who has no income from business or profession is generally not required to pay advance tax.
Taxpayers covered by specified presumptive taxation provisions may follow a different instalment schedule.
What Is an Advance Tax Calculator?
An advance tax calculator is an online tool that helps you estimate your income-tax liability during a financial year and plan advance tax payments before the applicable deadlines.
The Easy Return Advance Tax Calculator helps you estimate tax based on your expected income, eligible deductions, selected tax regime and relevant tax credits.
You can use the estimate to understand your potential advance tax liability and plan instalments under the applicable payment schedule. It can also help you compare the old tax regime and new tax regime where both are available to you.
Here's what an advance tax calculator can help you do:
See Your Estimated Tax Liability
Estimate the advance tax payable for the year and review the relevant instalment amounts and due dates. Actual liability may change if your income or tax information changes.
Compare Old vs New Tax Regime
Compare estimated tax under the old and new tax regimes, taking into account the deductions and exemptions permitted under each regime. The comparison depends on your eligibility and the relevant tax year.
Account for Tax Credits and Payments
Consider eligible TDS/TCS credits and advance tax already paid when estimating the remaining amount payable. Self-assessment tax is a separate payment category and should not automatically be treated as an on-time advance tax instalment.
Plan Payments and Reduce Interest Risk
Plan instalments to help reduce the risk of interest under Section 234B (Now Section 424) and Section 234C (Now Section 425). These provisions apply according to the relevant tax year, payment shortfall and statutory conditions.
Quarterly Due Dates for Advance Tax
Advance tax is generally payable in instalments during the financial year, rather than as one payment after the year ends.
For most taxpayers, four due dates apply: 15 June, 15 September, 15 December and 15 March. Each percentage refers to the cumulative advance tax that should have been paid by that date.
These rules continue for FY 2026–27 (Tax Year 2026–27) under Section 408 of the Income-tax Act, 2025 (corresponding to Section 211 of the Income-tax Act, 1961).
| Due Date | Minimum Cumulative Advance Tax |
|---|---|
| 15 June First instalment | 15% of the estimated advance tax liability. |
| 15 September Second instalment | 45% cumulatively, after accounting for advance tax already paid. |
| 15 December Third instalment | 75% cumulatively, after accounting for earlier instalments. |
| 15 March Final instalment | 100% of the estimated advance tax, less earlier advance tax payments. |
Different Advance Tax Rules for Presumptive Taxation
Eligible taxpayers declaring business or professional income under the specified presumptive taxation scheme follow a different advance tax instalment schedule.
For FY 2026–27, taxpayers covered under Section 58(2), Table Sl. No. 1 or 3 of the Income-tax Act, 2025 (corresponding to the earlier Sections 44AD and 44ADA) generally pay their entire advance tax liability in one instalment by 15 March.
| Due Date | Advance Tax Requirement |
|---|---|
| 15 March Single instalment | 100% of the estimated advance tax liability. |
Official source: Income Tax Department — Tax Payments Guidance .
Who Is Required to Pay Advance Tax?
Think advance tax applies only to large businesses? The requirement is much broader. Individuals, business owners, professionals and other taxpayers may need to pay advance tax during the financial year.
For FY 2026–27, advance tax is generally payable when the estimated tax liability, after adjusting applicable TDS/TCS credits, is ₹10,000 or more.
This threshold is covered by Section 404 of the Income-tax Act, 2025 (earlier Section 208 of the Income-tax Act, 1961).
Advance tax may apply to the following taxpayers:
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Salaried Taxpayers
Employees whose salary TDS does not fully cover their estimated tax liability. This may happen because of rental income, bank interest, dividends, capital gains or other taxable income.
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Business Owners
Sole proprietors, shopkeepers, traders and other business owners may need to pay advance tax on estimated taxable profits. Business income calculations and subsequent business tax return filing should reflect the applicable tax rules.
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Freelancers and Consultants
Self-employed individuals earning from independent services, consulting, content creation or contractual work may be required to pay advance tax. Eligible business expenses and TDS credits should be considered.
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Independent Professionals
Doctors, lawyers, architects, designers and other professionals may owe advance tax on their taxable professional income. Eligible presumptive taxation cases may have a different instalment schedule.
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HUFs, Firms, LLPs and Companies
Hindu Undivided Families, partnership firms, LLPs, companies and other entities may be liable for advance tax when the applicable estimated tax-payable threshold is met.
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Non-Resident Indians (NRIs)
Non-resident taxpayers with income taxable in India may also have an advance tax obligation. Their liability depends on the taxable income, relevant withholding, residential status and applicable treaty provisions.
Exemption for Resident Senior Citizens
A resident individual aged 60 years or above during the relevant tax year is generally not required to pay advance tax if they have no income chargeable under the head "Profits and gains of business or profession."
For FY 2026–27, this exemption is provided under Section 403(3) of the Income-tax Act, 2025 (earlier Section 207(2) of the Income-tax Act, 1961).
Example: A resident retired person aged 65 receiving only pension and bank interest may qualify for this exemption, even if tax is otherwise payable under the applicable rules.
Consequences of Advance Tax Non-Payment: Sections 234B and 234C
If you are required to pay advance tax but fail to pay the required amount or miss an instalment deadline, interest may become payable.
These charges are generally statutory interest, not a separate fixed penalty. For Tax Year 2026–27, the relevant provisions are Section 234B (Now Section 424) and Section 234C (Now Section 425).
For FY 2025–26 (AY 2026–27), the earlier Income-tax Act, 1961 continues to govern advance-tax defaults.
Section 234B (Now Section 424)
Default in payment of advance tax. Interest generally applies where advance tax was not paid or the amount paid was less than 90% of assessed tax.
Interest is calculated on the applicable shortfall, generally beginning on 1 April following the tax year, subject to payments, assessment and other statutory provisions.
Section 234C (Now Section 425)
Deferment of advance tax instalments. Interest may arise when cumulative advance tax paid falls short of the prescribed instalment targets.
For regular instalments, interest is generally calculated at 3% for each of the first three instalment shortfalls and 1% for the March shortfall, subject to applicable thresholds and exceptions.
- ✓ Estimate the year's tax liability after eligible credits.
- ✓ Monitor cumulative payments before each due date.
- ✓ Revise estimates when income or tax rules change during the year.
How to Use the Easy Return Advance Tax Calculator
The calculator can help you prepare an estimated advance tax payment plan. Use the inputs available in your calculator and follow these five steps.
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Select Your Taxpayer Profile
Choose the applicable taxpayer category, age, residential status and tax year using the available fields.
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Enter Estimated Income
Include relevant salary, business or professional income, capital gains, rental income, interest and other taxable income supported by the tool.
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Apply Eligible Deductions
Enter permitted deductions and exemptions under the applicable tax regime. Old and new regimes do not allow the same deductions.
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Account for Taxes Already Paid
Include relevant TDS/TCS credits and advance tax payments where supported. Keep self-assessment tax separate from on-time advance tax instalments.
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Calculate and Review
Review the estimated liability, tax-regime comparison and applicable instalment schedule shown by the calculator.
Need Help Filing Your ITR?
Income Tax Slab Rates for FY 2026–27
Your advance tax calculation depends on your estimated taxable income, applicable tax regime, eligible deductions, tax credits and relevant tax rates.
The new tax regime offers revised slab rates but permits only specified deductions. The old tax regime has different slab rates and allows certain deductions and exemptions, subject to eligibility.
Below are the general slab rates for eligible individual taxpayers for Tax Year 2026–27. Special-rate income, surcharge, rebate and other provisions require separate consideration.
New Tax Regime — FY 2026–27
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old Tax Regime — Below Age 60
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Advance Tax Calculation Example
Let's understand advance tax with a practical example.
Rohan is a 35-year-old resident individual running an independent consulting practice. He also earns interest income. For Tax Year 2026–27, assume that his income is subject to ordinary slab rates and that he uses the regular advance tax schedule, not the presumptive taxation schedule.
He has estimated gross total income of ₹18 lakh, eligible old-regime deductions of ₹2 lakh and TDS credit of ₹40,000.
Step 1: Calculate Tax Under Both Regimes
| Particulars | New Regime | Old Regime |
|---|---|---|
| Gross Total Income | ₹18,00,000 | ₹18,00,000 |
| Eligible Deductions Assumed | ₹0 | ₹2,00,000 |
| Taxable Income | ₹18,00,000 | ₹16,00,000 |
| Income Tax Before Cess | ₹1,60,000 | ₹2,92,500 |
| Health & Education Cess (4%) | ₹6,400 | ₹11,700 |
| Total Estimated Tax | ₹1,66,400 | ₹3,04,200 |
| Less: TDS Credit | ₹40,000 | ₹40,000 |
| Estimated Advance Tax | ₹1,26,400 | ₹2,64,200 |
Step 2: Calculate Quarterly Advance Tax Instalments
Based on the estimated new-regime advance tax of ₹1,26,400, Rohan's regular cumulative payment schedule would be:
| Due Date | Cumulative Target | Cumulative Amount | Instalment to Pay |
|---|---|---|---|
| 15 June | 15% | ₹18,960 | ₹18,960 |
| 15 September | 45% | ₹56,880 | ₹37,920 |
| 15 December | 75% | ₹94,800 | ₹37,920 |
| 15 March | 100% | ₹1,26,400 | ₹31,600 |
What Does This Example Tell Us?
Under the stated assumptions, Rohan's estimated advance tax liability is ₹1,26,400 in the new regime compared with ₹2,64,200 in the old regime.
The quarterly instalments total ₹1,26,400. By paying the required amounts on time, Rohan can reduce the risk of interest under Section 234B (Now Section 424) and Section 234C (Now Section 425).
This does not guarantee zero interest: final liability can change, and the applicable advance-tax calculations may require adjustments for income received during the year, taxes already paid and other statutory provisions.
Frequently Asked Questions
Find clear answers to common questions about advance tax, payment deadlines, interest, exemptions and tax calculations in India.
What is the minimum tax liability for advance tax to apply?
Advance tax generally applies when your estimated income tax payable is ₹10,000 or more during a financial year, after adjusting eligible TDS and TCS credits. This threshold is provided under Section 404 of the Income-tax Act, 2025.
If your estimated advance tax liability is below ₹10,000, you generally do not need to pay advance tax.
Do salaried employees need to pay advance tax?
Yes, salaried employees may need to pay advance tax if their employer's TDS does not fully cover their estimated tax liability.
Additional income from capital gains, bank interest, rental income or freelancing can create an advance tax obligation when the applicable threshold is met. Consider all income and eligible tax credits when estimating the amount.
Can I pay advance tax after the due date?
Yes. You can make a late advance tax payment, but interest may apply for delayed or insufficient payments.
Section 234B (Now Section 424) covers certain defaults or shortfalls in advance tax payment, while Section 234C (Now Section 425) covers deferment of advance tax instalments.
Interest is generally calculated at 1% per month or part of a month, subject to the applicable provision and calculation period.
How is advance tax different from self-assessment tax?
Advance tax is paid during the financial year based on your estimated taxable income.
Self-assessment tax is the remaining tax you pay after calculating your final liability and eligible credits, generally before filing your Income Tax Return (ITR).
Both payments contribute towards your final income tax liability.
Who is exempt from paying advance tax?
A resident individual aged 60 years or above who does not have income from a business or profession is generally exempt from advance tax.
Other taxpayers may also have no advance tax payment obligation if their estimated liability is below ₹10,000 after eligible adjustments.
The senior citizen exemption does not automatically apply to non-resident individuals.
How do presumptive taxpayers pay advance tax?
Eligible taxpayers using the presumptive taxation schemes under Section 44AD or Section 44ADA (Now Section 58(2), Table Sl. No. 1 or 3) can pay 100% of their advance tax liability by 15 March.
They generally do not need to follow the standard four-instalment schedule. The applicable rule is covered by Section 408(2) of the Income-tax Act, 2025.
Does the advance tax calculator work for both tax regimes?
The old tax regime and new tax regime may produce different tax liabilities because of differences in tax slabs, deductions, exemptions and rebates.
When using the Easy Return Advance Tax Calculator, select the relevant tax regime and tax year, and review the estimated liability before making a payment. Eligibility to choose a regime depends on your circumstances.
How do NRIs handle advance tax in India?
Non-Resident Indians (NRIs) may need to pay advance tax on income taxable in India, including applicable rental income, capital gains, interest or business income.
The requirement depends on estimated tax liability, eligible TDS/TCS credits, residential status and applicable tax treaty provisions.
If the remaining advance tax liability reaches ₹10,000 or more, advance tax may be payable.
What happens to advance tax when I file my income tax return?
Your advance tax payments are credited against your final income tax liability when filing your ITR.
If your eligible tax payments exceed your final liability, you may receive an income tax refund. If tax remains payable, you may need to pay self-assessment tax, including applicable interest or fees.
Can I revise my advance tax estimate during the year?
Yes. You can update your advance tax estimate when your expected income changes, such as after receiving a bonus, earning capital gains or experiencing changes in business profits.
Under Section 406(2) of the Income-tax Act, 2025, taxpayers can adjust their remaining advance tax instalments based on a revised estimate. However, revising an estimate does not automatically eliminate interest on earlier shortfalls.
Stop Guessing. Start Planning.
CA Sagar Batra
ICAI Registered Chartered Accountant · 10+ Years of Professional Experience · 12,000+ Tax Filings
Chartered Accountant with experience in taxation, compliance and business advisory. His work covers Income Tax, GST, TDS, tax notices, business compliance and financial documentation for individuals and businesses across India.