Comprehensive Guide • Taxation

Advance Tax Payment Due Dates, Slabs & Penalties (Section 234B/234C)

✍️ Author: AG World Tools Editorial Team ⚖️ Reviewed by: Verified by AG World Tools Technical & Financial Review Board 📅 Last Reviewed: 2026-11-01

Advance tax is the payment of income tax obligations in installments throughout the financial year rather than as a lump sum at the year's conclusion, legally mandated under Section 208 of the Income Tax Act for any taxpayer whose net tax liability exceeds ₹10,000 in a financial year after subtracting TDS credits. Non-payment or deferred payment triggers mandatory statutory interest penalties under Section 234B (1% per month for overall shortfall) and Section 234C (1% per month for installment deferment).

Resident senior citizens (aged 60 and above) who do not earn any income from a business or profession are completely exempt from paying advance tax.

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1. Advance Tax Payment Schedule (Individual & Corporate)

Installment Due Date Cumulative Minimum Tax Payable Statutory Compliance Target
On or before June 15 Not less than 15% of estimated advance tax liability First Quarter Check
On or before September 15 Not less than 45% of estimated advance tax liability Second Quarter Check
On or before December 15 Not less than 75% of estimated advance tax liability Third Quarter Check
On or before March 15 100% of estimated advance tax liability Final Financial Year Settlement

Note for Presumptive Taxpayers (Section 44AD / 44ADA): Eligible professionals and small business owners opting for presumptive taxation have a simplified schedule — they can pay 100% of their advance tax in a single installment on or before March 15.

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2. Penalties for Delayed Advance Tax Explained

Section 234C (Deferment of Installments)

If an installment falls short of the statutory percentage, interest is levied at 1% simple interest per month (or part of a month) on the shortfall amount, typically for a fixed 3-month window per installment:
  • June 15: 1% per month for 3 months if paid tax is less than 12% of total tax.
  • September 15: 1% per month for 3 months if paid tax is less than 36% of total tax.
  • December 15: 1% per month for 3 months if paid tax is less than 75% of total tax.
  • March 15: 1% on the shortfall for 1 month if paid tax is less than 100%.

    • Section 234B (Shortfall in Overall Payment)

    If a taxpayer fails to pay at least 90% of their total assessed tax as advance tax before March 31, simple interest at 1% per month is levied on the unpaid tax from April 1 of the assessment year until the date of actual payment.

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    Frequently Asked Questions

    Do salaried employees need to pay advance tax?

    If your employer deducts full TDS on your salary, you generally do not need to pay advance tax. However, if you earn substantial additional income from bank interest, capital gains, freelance gigs, or rental property, and your net non-salary tax exceeds ₹10,000, you must pay advance tax independently or declare the income to your employer.

    How do I pay advance tax online?

    Advance tax is paid online via the Income Tax e-Filing portal through Challan ITNS 280 (under Tax Applicable: Income Tax Other than Companies (0021) and Type of Payment: Advance Tax (100)).

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    Official Sources & Statutory References