← Back to Glossary Income Tax

Advance Tax

Tax paid in installments during the financial year when liability exceeds Rs 10,000.

Advance Tax is income tax paid in installments during the financial year instead of paying it all at the end. It is mandatory if your total tax liability for the year exceeds Rs 10,000.

Advance tax must be paid in four installments:

  • 15th June - At least 15% of tax liability
  • 15th September - At least 45% of tax liability
  • 15th December - At least 75% of tax liability
  • 15th March - 100% of tax liability

Senior citizens (60+) without business income are exempt from paying advance tax.

Examples

  • A freelancer with expected income of Rs 12 lakhs pays advance tax quarterly
  • A business owner paying 15% of estimated tax by June 15

Deadline

15th of June, September, December, and March

Never Miss a Income Tax Deadline

Get automatic reminders on Slack, WhatsApp, or Email.

Start Free