Advance Tax Calculator

Advance Tax Calculator

Use this advance tax calculator to split your yearly tax into the four advance tax installments. Enter your total tax and TDS to see how much is due on 15 June, September, December and March.

What Is Advance Tax?

Advance tax is the income tax you pay during the financial year itself, in installments, instead of paying the whole amount in one go while filing your return. It is the pay as you earn side of the tax system, meant for tax that TDS does not fully cover.

The figure you start with is the total tax on all your income for the year – salary, business income, rent, interest and capital gains put together. For a salaried person, that figure comes down once exemptions are counted, such as the tax free part of HRA, which you can work out on our HRA Calculator.

From the total tax, subtract the TDS and TCS already deducted during the year. Whatever is left is your advance tax, and it has to be paid across the four due dates given below.

Who Must Pay Advance Tax?

The ₹10,000 rule. Under Section 208, if your total tax for the year, after subtracting TDS, comes to ₹10,000 or more, paying advance tax is compulsory. If the figure is below ₹10,000, you can simply settle the tax while filing your return.

In practice this covers freelancers, business owners, professionals, landlords and anyone with sizeable income on which no tax is deducted at source. Salaried employees are also covered when their income beyond salary is large, because salary TDS alone does not pay the tax on it.

Capital gains are the most common trigger. No TDS is deducted when you sell shares or a property at a profit, so the whole tax on that gain has to come through advance tax. First work out the gain and its tax on our Capital Gains Tax Calculator, then add that tax to your total tax in the calculator above.

Senior citizen exemption. Under Section 207, a resident senior citizen aged 60 or more does not have to pay advance tax, provided he has no income from business or profession. A senior citizen who runs a business or a professional practice pays advance tax like everyone else.

Presumptive scheme exception. Taxpayers who declare income under the presumptive scheme of Section 44AD or 44ADA do not follow the four-installment pattern. They pay their entire advance tax in a single installment by 15 March.

Advance Tax Installment Due Dates

For individuals, advance tax is paid in four installments. Every due date carries a cumulative target – a percentage of your net tax that must stand paid by that date.

So the second installment is not a fresh 45% on its own. It takes your total payment up to 45% of net tax, which means 30% more after the first 15%. The calculator above already works on this cumulative basis.

Money paid after 15 March but up to 31 March 2027 is still treated as advance tax for FY 2026-27. Only the interest for the delay, explained in the next section, gets added.

Interest Under Section 234C and 234B

Section 234C – short or late installments. If an installment is paid late or falls short of its target, simple interest of 1% per month is charged on the shortfall. It runs for three months each on the June, September and December shortfalls, and for one month on the March shortfall.

There is one relief. If a shortfall arises only because income such as capital gains came in after a due date, no interest under Section 234C is charged, provided the full tax on that income is paid in the remaining installments.

Section 234B – too little tax paid overall. If the advance tax paid by 31 March 2027 is less than 90% of the tax finally assessed on your income, interest of 1% per month is charged on the gap. It runs from 1 April 2027 until the date the tax is paid or the assessment is completed.

Shortfalls usually come from income on which TDS is lower than your slab rate. FD interest is the common example: banks deduct TDS at only 10%, so a person in the 30% slab still owes the balance tax on it through advance tax. Our FD Interest Per Month post shows how much interest different deposit amounts earn in a year.

How to Pay Advance Tax

Online through e-Pay Tax. Log in to the income tax e-filing portal, open e-Pay Tax and start a new payment. Choose Income Tax and then the ITNS 280 challan, select Advance Tax with code 100 as the type of payment and assessment year 2027-28, and pay through net banking, UPI or debit card. The Income Tax Department has explained the full process in its e-payment of direct taxes guide.

Offline at a bank branch. Fill the same challan ITNS 280 on paper and deposit it at any authorised bank branch. The bank stamps the challan with a Challan Identification Number, and that stamped copy is your payment proof.

Keep the assessment year right. Advance tax for FY 2026-27 is paid under assessment year 2027-28, not 2026-27. Selecting the wrong assessment year or payment type is the most common payment mistake, and getting it corrected later takes time. Save the challan copy carefully, because you will need its details while filing your return.

Advance Tax Calculation Example

Take a taxpayer whose total tax for FY 2026-27 comes to ₹1,60,000. Part of this is tax on his salary and part is tax on mutual fund gains booked during the year – our Mutual Fund Tax Calculator shows how that gains tax is calculated. His employer has already deducted TDS of ₹40,000 during the year.

His net advance tax is ₹1,60,000 − ₹40,000 = ₹1,20,000. This is how that amount falls across the four due dates:

If he skips the June installment and pays everything later, the unpaid ₹18,000 on its own attracts interest under Section 234C at 1% per month for three months, apart from any interest on the later installments.

Note: This advance tax calculator works on your own estimate of the tax for the year. If your income rises or falls during the year, run the calculation again before the next due date and adjust the remaining installments.

Advance Tax Calculator (FAQ)