What is Advance Tax?
Advance tax is income tax paid during the financial year instead of paying the entire amount at the time of return filing. It is commonly relevant for freelancers, professionals, business owners, landlords, investors, NRIs, consultants and salaried individuals with income not fully covered by TDS.
If your estimated tax payable after reducing TDS and TCS is ₹10,000 or more, you may need to pay advance tax in scheduled instalments. The standard due dates are 15 June, 15 September, 15 December and 15 March.
Advance Tax Instalment Schedule
| Due Date | Cumulative Advance Tax Payable | Who Should Track This? |
|---|---|---|
| On or before 15 June | 15% of estimated annual tax liability | Regular taxpayers with advance tax liability |
| On or before 15 September | 45% of estimated annual tax liability | Freelancers, professionals, businesses, investors and salaried taxpayers with extra income |
| On or before 15 December | 75% of estimated annual tax liability | Taxpayers whose annual tax liability is becoming clearer |
| On or before 15 March | 100% of estimated annual tax liability | All liable taxpayers, including presumptive taxpayers |
Who May Need to Pay Advance Tax?
- Freelancers and consultants with professional receipts.
- Business owners with expected tax liability after TDS.
- Salaried individuals with rental income, capital gains, interest income or side income.
- NRIs earning taxable income in India.
- Investors with taxable gains or dividends not fully covered by TDS.
When Expert Review is Recommended
This estimator gives a practical estimate for regular tax planning. However, expert review is recommended where income includes capital gains, ESOPs, foreign assets, crypto or virtual digital assets, business losses, presumptive taxation, high-value AIS/TIS entries, or surcharge and marginal relief.