Advance Tax Calculator FY 2025-26
Calculate quarterly advance tax installments under Section 208/211 to avoid Section 234B/234C penal interest.
Advance Tax Calculator India
Compute quarterly advance tax installments (15%, 45%, 75%, 100%), verify statutory safe harbor eligibility (12% and 36%), calculate Presumptive Scheme dates (Section 44AD / 44ADA), and evaluate exact interest penalties for deferment or default under Sections 234B & 234C.
Taxpayer & Liability Details
Advance Tax Computation
Statutory Quarterly Installment Schedule
| Quarter | Due Date | Req % | Target (₹) | Paid (₹) | Shortfall (₹) | 234C Interest |
|---|
The Complete Guide to Indian Advance Tax (Sections 208, 211, 234B & 234C)
1. Statutory Applicability under Section 208
Under Section 208 of the Income Tax Act, 1961, Advance Tax is an obligatory "pay-as-you-earn" mechanism requiring individuals, corporations, partnership firms, and freelancers to discharge their income tax liability in staggered quarterly installments during the financial year in which income is earned, rather than deferring payment until return filing.
Advance tax applies to all taxpayers whose estimated total income tax liability for the financial year—after factoring in all applicable Tax Deducted at Source (TDS), Tax Collected at Source (TCS), foreign tax relief (Section 90/91), and MAT/AMT credits—equals or exceeds ₹10,000.
2. Statutory Installment Schedule under Section 211
Section 211 specifies mandatory cumulative installment targets depending on whether the taxpayer follows the regular taxation regime or presumptive taxation:
| Installment Quarter | Statutory Due Date | Regular Scheme (Corporate & Non-Corporate) | Presumptive Scheme (Sec 44AD / 44ADA) |
|---|---|---|---|
| 1st Installment (Q1) | On or before 15th June | Not less than 15% of net tax | Not applicable (0%) |
| 2nd Installment (Q2) | On or before 15th September | Not less than 45% of net tax | Not applicable (0%) |
| 3rd Installment (Q3) | On or before 15th December | Not less than 75% of net tax | Not applicable (0%) |
| 4th Installment (Q4) | On or before 15th March | Not less than 100% of net tax | 100% of net tax in single installment |
3. Section 234C: Deferment Interest & Statutory Safe Harbors
When a taxpayer fails to pay or underpays any quarterly installment, Section 234C levies simple interest at 1% per month (or part of a month) on the shortfall amount:
- Q1 Shortfall: 1% per month for 3 months (total 3%) on the shortfall below 15%.
- Q2 Shortfall: 1% per month for 3 months (total 3%) on the shortfall below 45%.
- Q3 Shortfall: 1% per month for 3 months (total 3%) on the shortfall below 75%.
- Q4 Shortfall: 1% per month for 1 month (total 1%) on the shortfall below 100%.
Under the proviso to Section 234C(1), no interest is levied for Q1 if cumulative payment reaches at least 12% of assessed tax (instead of 15%). Similarly, no interest is levied for Q2 if cumulative payment reaches at least 36% (instead of 45%).
4. Section 234B: Default Interest for Non-Payment or Underpayment
Section 234B penalizes taxpayers who default in payment of advance tax or pay less than 90% of assessed net tax by the end of the financial year (March 31).
If cumulative advance tax paid by March 31 is less than 90% of assessed tax, simple interest at 1% per month (or fraction thereof) is charged on the entire unpaid assessed tax, starting from April 1 of the assessment year until the date of determination of total income under Section 143(1) or self-assessment tax payment.
5. Statutory Exemptions under Section 207(2)
Resident Senior Citizens (Age 60+): Under Section 207(2), an individual resident in India who is of the age of 60 years or more at any time during the previous year and who does not have any income chargeable under the head "Profits and Gains of Business or Profession" (PGBP) is exempt from the requirement to pay advance tax.
Such senior citizens can discharge their total income tax liability via Self-Assessment Tax under Section 140A before filing their Income Tax Return without attracting any interest penalty under Section 234B or 234C.
Frequently Asked Questions
Who is liable to pay Advance Tax in India?
Under Section 208, every individual, professional, freelancer, firm, and corporate entity whose estimated income tax liability for the financial year after deducting TDS/TCS is ₹10,000 or more must pay advance tax in quarterly installments.
Do salaried employees need to pay advance tax?
Usually, employers deduct complete TDS on salary under Section 192, leaving net tax liability below ₹10,000. However, if a salaried employee earns substantial additional income (such as capital gains, rental income, dividend income, or interest on fixed deposits) that is not reported to the employer, and net tax exceeds ₹10,000, advance tax must be paid.
What happens if I miss the 15th March deadline?
Any tax paid on or before 31st March of the financial year is still treated as Advance Tax under Section 211(1). However, missing the 15th March installment triggers 1% interest under Section 234C for Q4. If total advance tax paid by 31st March is less than 90% of assessed tax, Section 234B interest starts accruing from 1st April at 1% per month.
How does presumptive taxation (Section 44AD / 44ADA) simplify advance tax?
Taxpayers opting for presumptive taxation under Section 44AD (small businesses) or Section 44ADA (specified professionals) are not required to pay advance tax in four quarters. They are allowed to pay 100% of their advance tax in a single installment on or before March 15.
How can I pay Advance Tax online?
Visit the official Income Tax e-Filing portal (incometax.gov.in), navigate to 'e-Pay Tax', enter your PAN, and generate Challan 280 selecting 'Advance Tax (100)'. Payments can be made via Net Banking, UPI, debit card, or RTGS/NEFT.