Advance Tax Calculator India (2026)

Calculate your quarterly income tax installments for FY 2025-26 and 2026-27. Compare liability using our Income Tax Calculator, avoid Section 234C interest penalties, and plan your business cash flows effectively.

Taxable Income Estimator

Include profits from Capital Gains or Harvested Losses.

You can Track TDS deductions from your 26AS here.

Total Tax Liability

₹0

Net Advance Tax

₹0

Payment Installment Schedule

Remaining Tax to Pay

₹0

Applicability

Liable

Paid TDS/TCS Pending Advance Tax

Due Dates (Financial Year 2025-26)

You must pay these minimum percentages of your estimated tax by the specified dates.

Due Date Cumulative % Cumulative Amount Inst. Payable

Tax Calculation Methodology

Net Advance Tax = [Total Tax Liability] - [TDS/TCS Paid]

Standard Deduction: A flat ₹75,000 deduction is applied for salaried individuals under the New Tax Regime for FY 2025-26.

Cess: 4% Health & Education cess is added to the basic tax amount.

Section 87A Rebate: In the New Regime, net taxable income up to ₹12 Lakh (Budget 2025) results in zero tax due to rebates.

Who Should Pay Advance Tax?

Advance tax is mandatory for all taxpayers in India whose estimated tax liability for the financial year is ₹10,000 or more after adjusting for TDS and TCS.

  • Salaried Individuals: Generally, your employer deducts TDS from your salary. However, if you have significant income from rentals, fixed deposit interest, or Capital Gains, you might still need to pay advance tax.
  • Business Owners & Professionals: Freelancers and businesses must calculate their expected profits and pay quarterly installments to remain compliant.
  • NRIs: Non-resident Indians earning income in India (like house property rent or stock profits) are also liable if the ₹10,000 threshold is met.

How to Avoid Advance Tax Penalty (Section 234C)

Section 234C interest is charged at 1% per month if you fail to pay the required percentage of tax by the quarterly due dates. Here is how to plan your payments:

  • Stick to the Schedule: Pay 15% by June, 45% by September, 75% by December, and 100% by March 15th.
  • Estimate Conservatively: It is better to over-estimate your income slightly than to underpay and attract interest under Section 234B and 234C.
  • Re-calculate Quarterly: As your Investment returns fluctuate, revisit this calculator to adjust your next installment.

Advance Tax Calculation Example

Consider a professional earning ₹20 Lakhs per year with ₹1 Lakh TDS already deducted:

Total Tax Liability (est.): ₹2,80,000

TDS Deducted: - ₹1,00,000

Net Advance Tax Payable: ₹1,80,000

1st Installment (June 15): ₹27,000 (15%)

2nd Installment (Sept 15): ₹54,000 (additional 30%)

...and so on.

Use our comprehensive Income Tax Calculator to find your base liability before using this schedule.

Advance Tax Laws in India

Advance tax is the income tax that must be paid "as you earn" throughout the financial year. Any taxpayer whose estimated tax liability (after TDS) exceeds ₹10,000 for the year is legally obligated to pay advance tax. This ensures that the government maintains a steady cash flow and reduces the financial burden on taxpayers at the end of the year.

Failing to pay on time results in interest penalties under Section 234C (for quarterly delay) and Section 234B (for overall shortfall at year-end). Plan your exits using tax-loss harvesting to lower this liability legally.

Advance Tax FAQs

1. What are the due dates for Advance Tax payments?
Installments are due on June 15 (15%), Sept 15 (45%), Dec 15 (75%), and March 15 (100%). For professionals under Section 44ADA, 100% is due by March 15.
2. Are senior citizens exempt from Advance Tax?
Yes, resident individuals aged 60 years or older who do not have any income from "Profits and Gains of Business or Profession" are exempt from paying Advance Tax.
3. What happens if I pay more Advance Tax than required?
If your Advance Tax payments exceed your final liability, you can claim a refund while filing your Income Tax Return (ITR). You may also earn interest on the refund amount.
4. How is Section 234C interest calculated?
Interest under Section 234C is charged at 1% per month for three months on the amount of shortfall in each installment. For the last installment in March, interest is charged for one month.
5. Is Advance Tax mandatory for NRIs?
Yes. If an NRI has income in India (like rental income, interest, or capital gains) and the tax liability after TDS is more than ₹10,000, they must pay Advance Tax.

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Disclaimer

Calculations are based on simplified current tax slabs for FY 2025-26 and 2026-27. Actual tax liability depend on specific circumstances, exemptions, and surcharges not included in this model. This tool follows current Indian income tax rules for advance tax calculation. This tool is for educational purposes only. Always consult a Chartered Accountant (CA) for formal tax filing.

Last Updated: March 2026