Advance Tax Calculator: Due Dates & Penalty for Late Payment

The Quarterly Deadlines That Cost 1% Per Month

If your total tax liability for a financial year exceeds ₹10,000 (after TDS), you’re required to pay advance tax in quarterly instalments. Miss the deadlines, and Section 234C charges simple interest at 1% per month on the shortfall. For freelancers, business owners, and anyone with significant non-salary income, this is money that quietly leaks away.

Advance Tax Due Dates (FY 2025-26)

Note: Senior citizens (60+) without business income are exempt from advance tax. Salaried employees whose employer deducts adequate TDS usually don’t need to worry about advance tax unless they have significant other income.

Who Must Pay Advance Tax?

• Freelancers and consultants — TDS covers only part of your liability; the rest must be paid as advance tax
• Business owners — no TDS on business profits, so 100% must be self-assessed
• Investors with capital gains — profits from stock trading, property sale, or mutual fund redemption
• Rental income earners — if rent TDS doesn’t cover your full liability
• Salaried with side income — interest, freelance work, or capital gains beyond employer TDS

Worked Example: Freelancer with ₹18 LPA Income

Ananya is a freelance graphic designer earning ₹18,00,000/year. Her clients deduct 10% TDS (₹1,80,000 total). Her actual tax liability under the new regime:

• Taxable income (after ₹75K standard deduction): ₹17,25,000
• Tax: ₹2,38,750 + cess ₹9,550 = ₹2,48,300
• TDS already paid: ₹1,80,000
• Remaining liability: ₹68,300 (must be paid as advance tax)

Her advance tax schedule: ₹10,245 by June 15, ₹30,735 by September 15, ₹51,225 by December 15, ₹68,300 by March 15.

Penalty for Shortfall or Non-Payment

• Section 234B: 1% per month interest on total advance tax shortfall (if you paid less than 90% of liability by March 31)
• Section 234C: 1% per month interest on instalment-wise shortfall (for each quarter where cumulative payment falls short)
• Example: If you owe ₹1,00,000 in advance tax but pay nothing until March, you’d owe approximately ₹6,000–8,000 in interest under 234B and 234C combined

How to Pay Advance Tax Online

1. Visit the e-Pay Tax portal on the Income Tax website
2. Select Challan 280 (Income Tax payment)
3. Choose "Advance Tax (100)" as payment type
4. Enter PAN, assessment year (2026-27 for FY 2025-26), and amount
5. Pay via net banking, UPI, or debit card

Estimate your quarterly instalments with the advance tax calculator. If you also have TDS being deducted by clients, account for it using the TDS calculator to avoid overpaying.