Advance Tax Calculator
Advance tax is income tax paid in instalments through the year instead of a lump sum at the end. If your total tax after TDS comes to ₹10,000 or more, the law expects you to pay as you earn, in four instalments with fixed due dates. This calculator takes your estimated annual tax and the TDS already deducted, then shows how much to pay by 15 June, 15 September, 15 December and 15 March, so you stay clear of interest under Sections 234B and 234C.
Net Advance Tax
₹2,00,000
| Due Date | Instalment | Cumulative |
|---|---|---|
| By 15 June | ₹30,000 | ₹30,000 (15%) |
| By 15 September | ₹60,000 | ₹90,000 (45%) |
| By 15 December | ₹60,000 | ₹1,50,000 (75%) |
| By 15 March | ₹50,000 | ₹2,00,000 (100%) |
About the Advance Tax Calculator
Advance tax is the pay-as-you-earn system under the Income-Tax Act, requiring taxpayers to remit tax in instalments during the financial year. It applies to salaried individuals with other income, freelancers, professionals and businesses whose net tax liability exceeds ₹10,000 in a year.
Why it is useful
Paying advance tax on time avoids the interest that Sections 234B and 234C levy on shortfalls and late instalments. The calculator spreads a large annual bill into manageable quarterly amounts and shows exactly what is due at each stage after adjusting the TDS already withheld on your income.
How the calculation works
The cumulative targets are 15% of the tax by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Each instalment = cumulative % × (estimated tax − TDS) minus what you have already paid. Any shortfall against these milestones attracts interest under Sections 234B and 234C. Senior citizens without business income are exempt from paying advance tax.
Key inputs explained
- Estimated annual tax: Your projected total income-tax liability for the year, including cess.
- TDS already deducted: Tax withheld at source on salary, interest and other income, which reduces the advance tax due.
- Taxes already paid: Any advance-tax instalments already remitted earlier in the year.
- Taxpayer type: Whether you are a senior citizen without business income, who is exempt.
Example calculation
Inputs
- Estimated annual tax
- ₹1,20,000
- TDS deducted
- ₹20,000
- Net tax payable
- ₹1,00,000
Calculation breakdown
- By 15 Jun (15%)
- 15% × 1,00,000 = ₹15,000
- By 15 Sep (45%)
- ₹45,000 cumulative
- By 15 Dec (75%)
- ₹75,000 cumulative
- By 15 Mar (100%)
- ₹1,00,000 cumulative
After netting off the ₹20,000 TDS, ₹1,00,000 of tax must be paid in advance. The freelancer pays ₹15,000 by 15 June, then tops up to ₹45,000 by 15 September, ₹75,000 by 15 December and the full ₹1,00,000 by 15 March.
Benefits
- Turns a single large tax bill into four planned instalments.
- Adjusts for TDS so you never overpay advance tax.
- Helps you sidestep interest under Sections 234B and 234C.
Limitations
- Accuracy depends on how well you estimate your annual income and tax.
- Does not compute the 234B/234C interest already accrued on past shortfalls.
- Presumptive-scheme taxpayers under 44AD/44ADA pay 100% by 15 March, which the standard schedule does not reflect.
Tips
- Revise your estimate each quarter as your actual income becomes clearer.
- Pay through the income-tax portal using Challan 280 and keep the receipts.
- If you miss a milestone, pay the shortfall immediately to limit 234C interest.
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About this calculator
The Advance Tax Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.