{"id":27042,"date":"2025-12-15T07:33:50","date_gmt":"2025-12-15T07:33:50","guid":{"rendered":"https:\/\/www.refrens.com\/grow\/?p=27042"},"modified":"2025-12-15T07:35:28","modified_gmt":"2025-12-15T07:35:28","slug":"advance-tax","status":"publish","type":"post","link":"https:\/\/www.refrens.com\/grow\/advance-tax\/","title":{"rendered":"Advance Tax: Who Needs to Pay, When to Pay &#038; How to Avoid Penalties"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #161c26;color:#161c26\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #161c26;color:#161c26\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/#What_Is_Advance_Tax\" title=\"What Is Advance Tax?\">What Is Advance Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/#Who_Has_to_Pay_Advance_Tax\" title=\"Who Has to Pay Advance Tax?\">Who Has to Pay Advance Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/#Why_Is_Advance_Tax_Important\" title=\"Why Is Advance Tax Important?\">Why Is Advance Tax Important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/#_Advance_Tax_Due_Dates\" title=\"\u00a0Advance Tax Due Dates\">\u00a0Advance Tax Due Dates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/#How_to_Calculate_Advance_Tax\" title=\"How to Calculate Advance Tax\">How to Calculate Advance Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/#How_to_Pay_Advance_Tax_Online\" title=\"How to Pay Advance Tax Online\">How to Pay Advance Tax Online<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/#_What_If_You_Dont_Pay_Advance_Tax\" title=\"\u00a0What If You Don\u2019t Pay Advance Tax?\">\u00a0What If You Don\u2019t Pay Advance Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"what-is-advance-tax\"><span class=\"ez-toc-section\" id=\"What_Is_Advance_Tax\"><\/span>What Is Advance Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Advance Tax<\/strong> is the income tax that individuals and businesses must pay in <strong>installments during the financial year<\/strong>, instead of paying it all at once at year-end.<br><br>It is often called the <strong>\u201cpay-as-you-earn\u201d tax system<\/strong>.<\/p>\n\n\n\n<p>If the estimated tax liability for the financial year exceeds <strong>\u20b910,000<\/strong>, you must pay advance tax in installments.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"who-has-to-pay-advance-tax\"><span class=\"ez-toc-section\" id=\"Who_Has_to_Pay_Advance_Tax\"><\/span>Who Has to Pay Advance Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Advance tax applies to taxpayers with income from multiple sources. You must pay it if your tax liability is above \u20b910,000 after deducting TDS.<\/p>\n\n\n\n<p id=\"salaried-individuals\"><strong>\u2714 Salaried Individuals<\/strong><\/p>\n\n\n\n<p>Pay advance tax if you earn extra income like interest, rental income, or capital gains.<\/p>\n\n\n\n<p id=\"freelancers-professionals\"><strong>\u2714 Freelancers &amp; Professionals<\/strong><\/p>\n\n\n\n<p>Designers, consultants, doctors, lawyers, and anyone receiving income without TDS must pay advance tax.<\/p>\n\n\n\n<p id=\"business-owners\"><strong>\u2714 Business Owners<\/strong><\/p>\n\n\n\n<p>Including proprietors, partnerships, LLPs, and companies.<\/p>\n\n\n\n<p id=\"presumptive-taxation-scheme-44ad-44ada\"><strong>\u2714 Presumptive Taxation Scheme (44AD\/44ADA)<\/strong><\/p>\n\n\n\n<p>Taxpayers choosing presumptive income are not required to pay the quarterly advance tax. However, they must pay their <strong>entire<\/strong> advance tax by <strong>15<sup>th<\/sup> March<\/strong>.<\/p>\n\n\n\n<p id=\"resident-senior-citizens-aged-60-or-above\"><strong>\u2714 Resident Senior Citizens (aged 60 or above)<\/strong><\/p>\n\n\n\n<p>Resident senior citizens are exempt from advance tax if they do not have any income from business or profession.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"why-is-advance-tax-important\"><span class=\"ez-toc-section\" id=\"Why_Is_Advance_Tax_Important\"><\/span>Why Is Advance Tax Important?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Paying advance tax helps:<\/p>\n\n\n\n<ul><li>Avoid penalties under <strong>Section 234B &amp; 234C<\/strong><\/li><li>Reduce financial burden at year-end<\/li><li>Improve tax planning<\/li><li>Improve compliance and cash-flow management<\/li><\/ul>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"advance-tax-due-dates\"><span class=\"ez-toc-section\" id=\"_Advance_Tax_Due_Dates\"><\/span>\u00a0Advance Tax Due Dates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong><em>Due Date<\/em><\/strong><\/td><td><strong>% of Tax Payable<\/strong><\/td><\/tr><tr><td><strong><em>15 June<\/em><\/strong><\/td><td>15%<\/td><\/tr><tr><td><strong><em>15 September<\/em><\/strong><\/td><td>45%<\/td><\/tr><tr><td><strong><em>15 December<\/em><\/strong><\/td><td>75%<\/td><\/tr><tr><td><strong><em>15 March<\/em><\/strong><\/td><td>100%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Note &#8211;<\/strong> For presumptive taxpayers (44AD\/44ADA): Full amount is due by <strong>15<sup>th<\/sup> March<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"how-to-calculate-advance-tax\"><span class=\"ez-toc-section\" id=\"How_to_Calculate_Advance_Tax\"><\/span>How to Calculate Advance Tax<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following steps would help to calculate the Advance Tax:<\/p>\n\n\n\n<p><strong>Step 1 &#8211; Estimate Annual Income:<\/strong><\/p>\n\n\n\n<p>Determine income from all sources, such as salary, business, freelancing, rent, and investments.<\/p>\n\n\n\n<p><strong>Step 2 &#8211; Deduct Allowable Deductions:<\/strong><\/p>\n\n\n\n<p>Subtract deductions under sections like 80C, 80D, and other applicable provisions.<\/p>\n\n\n\n<p><strong>Step 3 &#8211; Compute Taxable Income:<\/strong><\/p>\n\n\n\n<p>Subtract exemptions like HRA and deductions from the total income to arrive at taxable income.<\/p>\n\n\n\n<p><strong>Step 4 &#8211; Apply Tax Slabs:<\/strong><\/p>\n\n\n\n<p>Calculate tax liability based on the applicable income tax slab rates.<\/p>\n\n\n\n<p><strong>Step 5 &#8211; Account for TDS\/TCS:<\/strong><\/p>\n\n\n\n<p>Deduct any tax already deducted at source (TDS) or collected at source (TCS) from your tax liability.<\/p>\n\n\n\n<p><strong>Step 6 &#8211; Determine Advance Tax Liability:<\/strong><\/p>\n\n\n\n<p>If the total tax liability exceeds Rs. 10,000 for the year, advance tax payments are required.<\/p>\n\n\n\n<p><strong>Step 7 &#8211; Divide Payments as per Schedule:<\/strong><\/p>\n\n\n\n<p>Split the calculated tax amount into instalments as per the prescribed due dates (June 15, September 15, December 15, and March 15).<\/p>\n\n\n\n<p><strong>Example of Advance Tax calculation<\/strong><\/p>\n\n\n\n<p>Let us consider an example to understand how advance tax is calculated:<\/p>\n\n\n\n<p><strong>Scenario:<\/strong><\/p>\n\n\n\n<p><strong><em>Income Details:<\/em><\/strong><\/p>\n\n\n\n<p>Salary: Rs. 8,00,000<br>Freelancing Income: Rs. 5,00,000<br>Rental Income: Rs. 2,00,000<\/p>\n\n\n\n<p><strong><em>Deductions:<\/em><\/strong><\/p>\n\n\n\n<p>Section 80C (Investments): Rs. 1,50,000<br>Section 80D (Medical Insurance): Rs. 25,000<\/p>\n\n\n\n<p><strong><em>TDS Already Deducted:<\/em><\/strong> Rs. 50,000<\/p>\n\n\n\n<p><strong>Steps to calculate:<\/strong><\/p>\n\n\n\n<p><strong>1.\u00a0 Calculate Total Income (in Rs.):<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Salary<\/td><td>8,00,000<\/td><\/tr><tr><td><em>Add:<\/em> Freelancing<\/td><td>5,00,000<\/td><\/tr><tr><td><em>Add:<\/em> Rental<\/td><td>2,00,000<\/td><\/tr><tr><td><strong><em>Total<\/em><\/strong><\/td><td><strong><em>15,00,000<\/em><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>2.\u00a0 Apply Deductions (in Rs.):<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Total Income<\/td><td>15,00,000<\/td><\/tr><tr><td><em>Less:<\/em> Section 80C (Investments)<\/td><td>1,50,000<\/td><\/tr><tr><td><em>Less: <\/em>Section 80D (Medical Insurance)<\/td><td>25,000<\/td><\/tr><tr><td><strong><em>Taxable Income<\/em><\/strong><\/td><td><strong><em>13,25,000<\/em><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>3.\u00a0 Calculate Tax Liability:<\/strong><\/p>\n\n\n\n<p>Using applicable slab rates:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>0 to Rs. 2,50,000: 0%<\/td><td>0<\/td><\/tr><tr><td><em>Add: <\/em>Rs. 2,50,001 to Rs. 5,00,000: 5%<\/td><td>12,500<\/td><\/tr><tr><td><em>Add: <\/em>Rs. 5,00,001-Rs. 10,00,000: 20%<\/td><td>1,00,000 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<\/td><\/tr><tr><td><em>Add: <\/em>Rs. 10,00,001-Rs. 13,25,000: 30%<\/td><td>97,500<\/td><\/tr><tr><td><strong><em>Total Tax<\/em><\/strong><\/td><td><strong><em>2,10,000<\/em><\/strong><\/td><\/tr><tr><td><em>Less: <\/em>TDS<\/td><td>50,000<\/td><\/tr><tr><td><strong><em>Advance Tax Liability<\/em><\/strong><\/td><td><strong><em>1,60,000<\/em><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>4.\u00a0 Quarterly Instalment payments:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>15th June<\/td><td>15% of Rs. 1,60,000<\/td><td><strong>Rs. 24,000<\/strong><\/td><\/tr><tr><td>15th September<\/td><td>45% of Rs. 1,60,000<\/td><td>Rs. 72,000 <em>less<\/em> Rs. 24,000 (already paid) = <strong>Rs. 48,000<\/strong><\/td><\/tr><tr><td>15th December<\/td><td>75% of Rs. 1,60,000 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<\/td><td>Rs. 1,20,000 <em>less<\/em> Rs. 72,000 (already paid) = <strong>Rs. 48,000<\/strong><\/td><\/tr><tr><td>15th March<\/td><td>100% of Rs. 1,60,000<\/td><td>Rs. 1,60,000 \u2013 Rs. 1,20,000 = <strong>Rs. 40,000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"how-to-pay-advance-tax-online\"><span class=\"ez-toc-section\" id=\"How_to_Pay_Advance_Tax_Online\"><\/span>How to Pay Advance Tax Online<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Advance tax can be paid easily through the <strong>Income Tax e-Filing portal<\/strong>:<\/p>\n\n\n\n<p>1.&nbsp; &nbsp; Visit the e-Filing portal &#8211;<a href=\"https:\/\/www.incometax.gov.in\/iec\/foportal\/\" target=\"_blank\" rel=\"noopener\"> https:\/\/www.incometax.gov.in\/iec\/foportal\/<\/a><\/p>\n\n\n\n<p>2.&nbsp; &nbsp; Click <strong>e-Pay Tax<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" width=\"441\" height=\"230\" src=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image.png\" alt=\"e-pay tax\" class=\"wp-image-27043\" srcset=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image.png 441w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-300x156.png 300w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-150x78.png 150w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-200x104.png 200w\" sizes=\"(max-width: 441px) 100vw, 441px\" \/><\/figure><\/div>\n\n\n\n<p>3.\u00a0 \u00a0 Enter the details below in the portal and confirm the OTP once you proceed.\u00a0 \u00a0 <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" width=\"704\" height=\"379\" src=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/e-pay-tax-form.png\" alt=\"e-pay tax form\" class=\"wp-image-27047\" srcset=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/e-pay-tax-form.png 704w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/e-pay-tax-form-300x162.png 300w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/e-pay-tax-form-150x81.png 150w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/e-pay-tax-form-200x108.png 200w\" sizes=\"(max-width: 704px) 100vw, 704px\" \/><\/figure><\/div>\n\n\n\n<p>4.&nbsp; &nbsp; &nbsp; After your login, select <strong>Proceed <\/strong>at the <strong>Income Tax<\/strong> section.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" width=\"548\" height=\"345\" src=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-3.png\" alt=\"\" class=\"wp-image-27046\" srcset=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-3.png 548w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-3-300x189.png 300w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-3-150x94.png 150w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-3-178x112.png 178w\" sizes=\"(max-width: 548px) 100vw, 548px\" \/><\/figure><\/div>\n\n\n\n<p>5.&nbsp; &nbsp; Choose the <strong>Assessment year<\/strong> as 2026-27 and <strong>Type of Payment<\/strong> as <strong>Advance Tax(100) <\/strong><strong><\/strong><\/p>\n\n\n\n<p>6.&nbsp; &nbsp; &nbsp; Enter the tax amount in the below window<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" width=\"916\" height=\"377\" src=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-2.png\" alt=\"\" class=\"wp-image-27045\" srcset=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-2.png 916w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-2-300x123.png 300w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-2-150x62.png 150w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-2-768x316.png 768w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-2-200x82.png 200w\" sizes=\"(max-width: 916px) 100vw, 916px\" \/><\/figure><\/div>\n\n\n\n<p>7. &nbsp; &nbsp; Make the payment using any of the below options<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" width=\"900\" height=\"395\" src=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-1.png\" alt=\"\" class=\"wp-image-27044\" srcset=\"https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-1.png 900w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-1-300x132.png 300w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-1-150x66.png 150w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-1-768x337.png 768w, https:\/\/www.refrens.com\/grow\/wp-content\/uploads\/2025\/12\/image-1-200x88.png 200w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/figure><\/div>\n\n\n\n<p>8. Once the payment is done, a challan will be generated, which can be downloaded and saved for the records.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"what-if-you-don-t-pay-advance-tax\"><span class=\"ez-toc-section\" id=\"_What_If_You_Dont_Pay_Advance_Tax\"><\/span>\u00a0What If You Don\u2019t Pay Advance Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You may face interest penalties:<\/p>\n\n\n\n<p><strong>1.<\/strong>&nbsp; &nbsp; &nbsp; &nbsp; <strong>Interest under Section 234B<\/strong><\/p>\n\n\n\n<p>By March 31, at least 90% of the total tax liability must be paid through advance tax or TDS\/TCS. If this condition is not met, 1% interest per month will be charged on the unpaid amount until the payment is made.<\/p>\n\n\n\n<p>&nbsp;<strong>2.<\/strong> &nbsp; &nbsp; &nbsp; <strong>Interest under Section 234C<\/strong><\/p>\n\n\n\n<p>If quarterly instalments of advance tax are not paid on time, interest is charged as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Scenario<\/strong><\/td><td><strong>Interest Rate<\/strong><\/td><td><strong>Duration<\/strong><\/td><td><strong>Basis for Calculation<\/strong><\/td><\/tr><tr><td>Advance tax paid by June 15 is less than 15%<\/td><td>1% per month<\/td><td>3 months<\/td><td>Shortfall from 15% of total liability<\/td><\/tr><tr><td>Advance tax paid by September 15 is less than 45%<\/td><td>1% per month<\/td><td>3 months<\/td><td>Shortfall from 45% of total liability<\/td><\/tr><tr><td>Advance tax paid by December 15 is less than 75%<\/td><td>1% per month<\/td><td>3 months<\/td><td>Shortfall from 75% of total liability<\/td><\/tr><tr><td>Advance tax paid by March 15 is less than 100%<\/td><td>1% per month<\/td><td>1 month<\/td><td>Shortfall from 100% of total liability<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Penalties increase the overall tax burden; hence, timely payment of advance tax is essential.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"faqs\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Q: Who must pay Advance Tax?<\/strong> <br><strong>A:<\/strong> Anyone whose estimated tax liability for the year (after TDS) exceeds \u20b910,000.<\/p>\n\n\n\n<p><strong>Q: What are the due dates?<\/strong> <br><strong>A:<\/strong> You must pay by the 15th of June (15%), September (45%), December (75%), and March (100%).<\/p>\n\n\n\n<p><strong>Q: Are senior citizens exempt?<\/strong> <br><strong>A:<\/strong> Yes, resident senior citizens (60+) are exempt unless they have income from a business or profession.<\/p>\n\n\n\n<p><strong>Q: What is the penalty for late payment?<\/strong> <br><strong>A:<\/strong> You are charged 1% simple interest per month on the unpaid amount under Sections 234B and 234C.<\/p>\n\n\n\n<p><strong>Q: Do salaried employees need to pay it?<\/strong> <br><strong>A:<\/strong> Yes, but only if they have significant non-salary income (like capital gains or rent) not covered by employer TDS.<\/p>\n\n\n\n<p><strong>Q: How do I make the payment online?<\/strong> <br><strong>A:<\/strong> Use the Income Tax e-filing portal and select &#8220;Advance Tax (100)&#8221; as the payment type.<\/p>\n\n\n\n<p><strong>Q: What if I miss a deadline?<\/strong> <br><strong>A:<\/strong> Pay the installment as soon as possible to minimize the 1% monthly interest accumulation.<\/p>\n\n\n\n<p><strong>Q: What is Section 234C specifically?<\/strong> <br><strong>A:<\/strong> It is the interest penalty for failing to pay the required percentage (15%, 45%, 75%, 100%) by the quarterly deadlines.<\/p>\n\n\n\n<p><strong>Q: What is Section 234B specifically?<\/strong><br><strong>A:<\/strong> It is the interest penalty if you haven&#8217;t paid at least 90% of your total annual tax by March 31st.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-background\" style=\"background-color:#e3c4ff\"><em><strong>About the Author<\/strong><br><\/em><a href=\"https:\/\/www.linkedin.com\/in\/kajal-agarwal-aab34a118\/\" target=\"_blank\" rel=\" noopener\">Kajal Agarwal<\/a> is a qualified Chartered Accountant and Assistant Vice President \u2013 Finance at a U.S.-based multinational corporation, where she manages financial operations for clients generating over $100 million in revenue. A mentor to aspiring CAs and author of a widely acclaimed book on Company Law, she has also appeared live on DD News as a Budget 2025 expert, sharing insights on national fiscal policy. Outside her professional life, Kajal is deeply committed to holistic living as a long-time practitioner of Iyengar Yoga and a certified Pranic Healer, finding balance through yoga, meditation, and mindful leadership.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Is Advance Tax? Advance Tax is the income tax that individuals and businesses must pay in installments during the financial year, instead of paying it all at once at year-end. It is often called the \u201cpay-as-you-earn\u201d tax system. If the estimated tax liability for the financial year exceeds \u20b910,000, you must pay advance tax &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/www.refrens.com\/grow\/advance-tax\/\"> <span class=\"screen-reader-text\">Advance Tax: Who Needs to Pay, When to Pay &#038; How to Avoid Penalties<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[3],"tags":[],"jetpack_featured_media_url":"","uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"refrens-yarpp-thumbnail-w200":false,"newspack-article-block-landscape-large":false,"newspack-article-block-portrait-large":false,"newspack-article-block-square-large":false,"newspack-article-block-landscape-medium":false,"newspack-article-block-portrait-medium":false,"newspack-article-block-square-medium":false,"newspack-article-block-landscape-small":false,"newspack-article-block-portrait-small":false,"newspack-article-block-square-small":false,"newspack-article-block-landscape-tiny":false,"newspack-article-block-portrait-tiny":false,"newspack-article-block-square-tiny":false,"newspack-article-block-uncropped":false,"yarpp-thumbnail":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"CA Kajal Agarwal","author_link":"https:\/\/www.refrens.com\/grow\/author\/kajal-agarwal\/"},"uagb_comment_info":0,"uagb_excerpt":"What Is Advance Tax? Advance Tax is the income tax that individuals and businesses must pay in installments during the financial year, instead of paying it all at once at year-end. It is often called the \u201cpay-as-you-earn\u201d tax system. If the estimated tax liability for the financial year exceeds \u20b910,000, you must pay advance tax&hellip;","_links":{"self":[{"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/posts\/27042"}],"collection":[{"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/comments?post=27042"}],"version-history":[{"count":2,"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/posts\/27042\/revisions"}],"predecessor-version":[{"id":27049,"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/posts\/27042\/revisions\/27049"}],"wp:attachment":[{"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/media?parent=27042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/categories?post=27042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.refrens.com\/grow\/wp-json\/wp\/v2\/tags?post=27042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}