Advance Tax in India: Who Must Pay and How to Calculate
Advance Tax is the "pay-as-you-earn" system of Indian income tax. If your total tax liability for the year (after TDS) exceeds ₹10,000, you must pay it in instalments during the year instead of a lump sum at filing.
Who must pay
Companies, LLPs, businesses and professionals, and salaried individuals with significant non-salary income (rent, capital gains, interest, freelance). Senior citizens without business income are exempt.
The four instalments
- By 15 June — 15% of estimated tax
- By 15 Sept — 45% (cumulative)
- By 15 Dec — 75%
- By 15 March — 100%
Taxpayers under the presumptive scheme (44AD/44ADA) pay 100% by 15 March in a single instalment.
Interest for shortfall
Missing instalments triggers Section 234C (1% per month on the shortfall) and non-payment by year-end triggers 234B. Accurate estimation matters.
How Statura helps
We estimate your liability, schedule instalments, and file challans on time to avoid interest. Talk to our tax team.