If your annual tax liability after TDS exceeds ₹10,000, you must pay it in four advance installments through the year — not as a lump sum at filing time. Missing or under-paying these installments triggers interest under sections 234B and 234C, often surprising people at filing. This calculator builds your installment schedule from your estimated annual tax.
What is Advance Tax?
Advance tax is the income tax you pay during the financial year on income that hasn't already been TDS-deducted at source. Salaried employees with only salary income usually don't owe advance tax (employer TDS covers it), but anyone with capital gains, rental income, freelance fees, business income, or interest above the TDS threshold typically does.
The Income Tax Act sets four installment deadlines: 15 June (15% of annual tax), 15 September (45% cumulative), 15 December (75% cumulative), and 15 March (100% cumulative). Each is a hard deadline — paying late triggers interest at 1% per month under section 234C, plus broader interest under 234B if total advance paid is below 90% of liability by year-end.
How the schedule is calculated
Step 1: estimate your annual tax liability — taxable income at slab rates plus surcharge plus cess, minus any TDS already deducted or expected. Step 2: apply the four-installment percentages: 15%, 45%, 75%, 100%. The amount due at each installment is the difference between the cumulative target and what's already been paid.
If you make profits in the second half of the year (a sudden capital gain, freelance windfall), you can adjust the installments — but you'll owe section 234C interest only on the portion that wasn't reasonably foreseeable. The schedule below assumes a steady income — re-run the calculator after each quarter with updated estimates.
- Annual Tax
- Estimated—total tax liability for the year minus expected TDS
How to use this calculator
Estimate your annual tax liability
Calculate using the income tax calculator with your projected income. Subtract any TDS your employer or banks will deduct during the year. The remainder is what advance tax must cover.
Read the four installment amounts and dates
Each installment has both an amount and a deadline. Schedule the payments as recurring calendar reminders for 10-12 June, September, December, March — give yourself buffer days.
Pay through Income Tax e-portal or NSDL Challan 280
Use Challan 280 on incometax.gov.in or tin-nsdl.com under 'self-assessment / advance tax' for the assessment year. The acknowledgement number is your proof — keep it for ITR filing.
Re-run after major income events
Sold property and made a large capital gain? Got a big freelance project mid-year? Recompute the remaining installments — you can pay extra in any installment to true up.
When to use it
Freelancers with no TDS on most receipts
Many freelance payments don't trigger TDS (under threshold or unincorporated payer). This means the freelancer is fully responsible for paying advance tax quarterly. Calculator predicts your installment plan from estimated annual income.
Investors with capital gains
Equity LTCG, real estate, or business income outside salary all need advance tax. Even salaried individuals with substantial capital gains have to pay advance tax in addition to TDS on salary.
Senior citizens with FD interest
Banks deduct 10% TDS on interest above ₹50K (₹40K for non-seniors). If your slab rate is 20% or 30%, the TDS-deducted amount is short — make up the gap via advance tax to avoid 234B/234C interest.
Common mistakes to avoid
Assuming TDS covers full liability
TDS rates are flat (10%, 20%) and don't account for your specific slab or deductions. If your slab is 30% and TDS is 10%, the remaining 20% must come via advance tax. Run the income tax calculator to find the gap.
Skipping installments because 'I'll pay everything in March'
Each installment has its own 234C interest at 1%/month if missed. Even paying everything by March 15 doesn't undo June, September, December shortfalls — you owe interest on each.
Missing a major income event mid-year
A sudden capital gain or business income spike must be added to subsequent installments. Re-run the calculator with the updated annual estimate; pay the catch-up at the next installment.
Frequently asked questions
Who must pay advance tax?
What are the advance tax due dates?
What is the difference between section 234B and 234C interest?
Are senior citizens exempt from advance tax?
How do I pay advance tax?
What if my income changes mid-year?
References
- Income Tax Act sections 207-219 — Advance tax— Income Tax Department
- Section 234B and 234C — Interest on default— Income Tax Department