Who has to pay advance tax and when?

⚡ Short answerYou must pay advance tax if your total tax liability for the year, after TDS, is ₹10,000 or more. It is paid in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Resident senior citizens without business income are exempt. Shortfalls attract interest under Sections 234B and 234C.

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Who is liable

Salaried employees whose TDS covers their tax usually don't need to pay advance tax. But anyone with significant non-salary income — capital gains, rent, interest, business or freelance income — often must, once net tax crosses ₹10,000.

The instalment calendar

15 June: 15% · 15 September: 45% cumulative · 15 December: 75% · 15 March: 100%. Presumptive taxpayers under 44AD/44ADA pay the whole amount by 15 March. Missing instalments triggers 1% per month interest under 234C, and 234B if under 90% is paid by year-end.

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What happens if I don't pay advance tax?

You pay interest under Section 234B (for paying less than 90% by year-end) and Section 234C (for missing instalment deadlines), both at 1% per month on the shortfall. Pay self-assessment tax before filing to stop further interest.

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General information for AY 2026-27, not professional advice. Rules change with each Finance Act / notification and depend on your facts — verify with a licensed CA or advocate before acting.