Advance tax is income tax paid in instalments during the financial year as you earn, instead of in a single payment at the end. It is often called the pay-as-you-earn tax.

Anyone whose total tax liability for the year, after subtracting TDS, is ₹10,000 or more. This commonly includes freelancers, business owners, and salaried people with extra income like capital gains, rent or interest on which enough tax has not already been deducted.

A resident senior citizen (aged 60 or above) with no income from business or profession is not required to pay advance tax. They can simply pay any tax due as self-assessment tax when filing their return.

For most taxpayers there are four instalments: 15% by 15 June, 45% (cumulative) by 15 September, 75% by 15 December, and 100% by 15 March. These percentages are cumulative, so each date tops up the total paid so far.

Estimate your total income for the year, compute the tax under your chosen regime including cess, then subtract the TDS already deducted. If the balance is ₹10,000 or more, that balance is your advance tax, spread across the instalments.

Yes, if their tax after TDS reaches ₹10,000. Clients may deduct some TDS, but it rarely covers the full liability, so freelancers usually need to pay advance tax on the balance.

Taxpayers under the presumptive schemes (Section 44AD or 44ADA) get a big simplification: they can pay their entire advance tax in a single instalment by 15 March, instead of four instalments.

Section 234B charges interest at 1% per month when you have not paid at least 90% of your total tax as advance tax by the end of the year. It applies on the shortfall from the start of the assessment year until you pay.

Section 234C charges interest at 1% per month for missing or underpaying an individual instalment by its due date. It is calculated instalment by instalment, so paying each one on time avoids it.

Usually not for the salary itself, because your employer deducts TDS every month. Advance tax on salary becomes relevant only if you have additional income — such as capital gains, rent or interest — where TDS has not fully covered the tax.

Advance tax is paid online through the income tax e-filing portal using challan ITNS 280, selecting the advance tax option and the correct assessment year. Keep the challan receipt for your records and your return.

Yes. Your advance tax is based on the total tax due including the 4% health and education cess. This calculator includes cess in the tax figure it shows.

Yes, and any excess is refunded after you file your return, along with interest in eligible cases. But it is usually better to estimate carefully so your money is not locked up unnecessarily during the year.

You simply revise your estimate at the next instalment. Advance tax is based on estimated income, so if you earn more or less than expected, adjust the remaining instalments to stay close to your actual liability.

Yes, but because gains are hard to predict, the law allows you to pay the advance tax on a capital gain in the remaining instalments after the gain arises, rather than being penalised for not forecasting it earlier.

No. It is an indicative estimate using FY 2026-27 slab rates and simplified assumptions. Your actual advance tax depends on your full income, deductions and TDS. Confirm with the income tax portal or a qualified tax advisor before paying.