Each taxpayer(Individual and Corporate) can pay advance tax on below mentioned dates every year
| On or before 15th June | 15% of advance tax |
| On or before 15th September | 45% of advance tax (-) advance tax already paid |
| On or before 15th December | 75% of advance tax (-) advance tax already paid |
| On or before 15th March | 100% of advance tax (-) advance tax already paid |
For taxpayers(Individual and Corporate) who have opted Presumptive Taxation Scheme under sections 44AD & 44ADA – Business Income
| Due Date | Advance Tax Payment Percentage |
|---|---|
| On or before 15th March | 100% of advance tax |
Interest On Late Payment
| Time | ROI | Period of Interest | Base Amount for Calculation |
| If Advance Tax paid by 15th June is less than 15% | 1% per month | 3 months | 15% of Amount* (-) tax paid before June 15 |
| If Advance Tax paid by 15th September is less than 45% | 1% per month | 3 months | 45% of Amount* (-) tax paid before September 15 |
| If Advance Tax paid by 15th December is less than 75% | 1% per month | 3 months | 75% of Amount* (-) tax paid before December 15 |
| If Advance Tax paid by 15th March is less than 100% | 1% per month | 1 month | 100% of Amount* (-) tax paid before March 15 |
Methodology for advance tax payment
Steps to calculate advance tax liability
Step 1: Estimate your total income for the financial year from different sources like capital gains, rental income, professional income, income from fixed deposits, salary and any other sources(business).
Step 2: From the gross income, reduce various deductions under section 80C, 80D, etc.
Step 3: Compute the tax payable on the basis of the current tax slab rates.
Step 4: Subtract any Tax Deducted at Source (TDS) that has already been deducted or is expected to be deducted based on the TDS rates.
If your tax liability after deducting TDS exceeds 10,000, you must pay the advance tax.