Advance Tax — Who Must Pay, Due Dates and 234B/234C Interest

• Anyone with tax of ₹10,000 or more not covered by TDS — freelancers, consultants, business owners, landlords, investors with large gains or interest.
• Salaried people with other income such as FD interest, rent, capital gains, dividends or freelance work, if the extra tax after TDS crosses ₹10,000.
• Presumptive taxpayers (small businesses and professionals under Sections 44AD and 44ADA) can pay the whole amount in one instalment by 15 March.
• Not required: resident senior citizens aged 60 or more who have no income from business or profession.

A note on law: the Income-tax Act, 2025 took effect on 1 April 2026 and renumbers sections. The advance tax rules carry over; we use the familiar 208, 234B and 234C references because that is how they are commonly known.

• 15 June 2026: at least 15% of the year's estimated tax
• 15 September 2026: at least 45% (cumulative)
• 15 December 2026: at least 75% (cumulative)
• 15 March 2027: 100%

Estimate total income for the full year, calculate tax under your chosen regime, subtract expected TDS and TCS, and pay the required share by each date. If your estimate changes — a bonus, a large capital gain — adjust the next instalment. See your schedule in the Advance Tax calculator.

Section 234C: late or short instalments

Simple interest of 1% a month on the shortfall: for three months on the June, September and December instalments, and for one month on the March instalment. There is no interest for June and September if you have paid at least 12% and 36% by those dates. Shortfalls caused by capital gains or dividends that arose after a due date are not charged, as long as tax on them is paid in the remaining instalments.

Section 234B: less than 90% paid by 31 March

If advance tax paid by 31 March is less than 90% of your assessed tax, interest of 1% a month on the unpaid amount runs from 1 April until you pay. Part of a month counts as a full month.

A salaried person also earns rent and interest, leaving ₹60,000 of tax for the year after TDS. The schedule is ₹9,000 by 15 June, ₹27,000 by 15 September, ₹45,000 by 15 December and ₹60,000 by 15 March.

• Pays everything on 31 March: no 234B (over 90% paid by 31 March), but 234C of ₹270 + ₹810 + ₹1,350 + ₹600 = ₹3,030.
• Pays everything in July with the return: the same ₹3,030 under 234C plus ₹2,400 under 234B (1% for April to July), about ₹5,430 in total.

The amounts look small, but they grow with the tax due, and paying on time also avoids a large lump sum at filing time.

Paid too much?

If your advance tax turns out to be more than your final liability — say a planned sale did not happen — the excess is refunded after you file your return, generally with interest from 1 April of the assessment year. Over-paying slightly is cheaper than under-paying, but there is no need to pay far more than your honest estimate. Keep the challan details (BSR code, date and serial number) and check that each payment appears in your Form 26AS or annual information statement before filing.

• Tell your employer. You can declare other income, and TDS on it, to your employer so that more tax is deducted from salary through the year.
• Pay advance tax yourself online through the e-Pay Tax service on the income tax portal, choosing advance tax as the payment type.
• Check TDS on interest and rent. Banks deduct TDS on FD interest above the threshold, often at 10%, which may be less than your slab rate. Estimate it with the TDS calculator.

Large equity gains are a common trigger — see capital gains tax on mutual funds and shares. To estimate your full-year tax first, use the Income Tax calculator.

Plan each instalment for the year with the Advance Tax calculator.