{"id":7783,"date":"2025-07-15T07:33:52","date_gmt":"2025-07-15T07:33:52","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7783"},"modified":"2025-07-15T07:33:56","modified_gmt":"2025-07-15T07:33:56","slug":"advance-tax","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/advance-tax\/","title":{"rendered":"Advance Tax"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/advance-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Advance tax<\/a> is a system in India where <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>payers pay their <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">income tax<\/a> in parts during the financial year, instead of in a single <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/lump-sum\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">lump sum<\/a> at year-end. It&#x2019;s called a &#x201C;pay-as-you-earn&#x201D; system and helps avoid a big tax payment or interest charges later.<\/p>\n\n\n\n<h2 id=\"who-must-pay\" class=\"wp-block-heading\">Who Must Pay?<\/h2>\n\n\n\n<p>You&#x2019;re required to pay advance tax if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your total tax liability (after <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>TDS<\/a>\/TCS) for the year exceeds &#8377;10,000.<\/li>\n\n\n\n<li>Includes salaried individuals with other income (rent, interest, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/capital-gain\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">capital gain<\/a>s), freelancers, professionals, and businesses .<\/li>\n\n\n\n<li>Exceptions:\n<ul class=\"wp-block-list\">\n<li>Resident senior citizens (60+) with <em>no<\/em> business\/professional income.<\/li>\n\n\n\n<li>Individuals\/content with only salary and sufficient TDS, if tax liability &#x2264; &#x20B9;10,000.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 id=\"due-dates-installments-fy-2025-26\" class=\"wp-block-heading\">Due Dates &amp; Installments (FY&#8239;2025&ndash;26)<\/h2>\n\n\n\n<p>For regular taxpayers (non&#x2011;presumptive):<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Installment<\/th><th>Due On<\/th><th>Cumulative % of Tax<\/th><\/tr><\/thead><tbody><tr><td>1st<\/td><td>15&#x202F;June&#x202F;2025<\/td><td>15%<\/td><\/tr><tr><td>2nd<\/td><td>15&#x202F;September<\/td><td>45%<\/td><\/tr><tr><td>3rd<\/td><td>15&#x202F;December<\/td><td>75%<\/td><\/tr><tr><td>4th<\/td><td>15&#x202F;March&#x202F;2026<\/td><td>100%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><em>Presumptive scheme taxpayers (under Sec&#x202F;44AD\/44ADA)<\/em> pay the full advance tax in one go by <strong>15 March 2026<\/strong>.<\/p>\n\n\n\n<h2 id=\"how-to-calculate-advance-tax\" class=\"wp-block-heading\">How to Calculate Advance Tax<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Estimate total income<\/strong> from all sources (salary, business, rent, capital gains, interest).<\/li>\n\n\n\n<li><strong>Deduct eligible deductions<\/strong> (like under Sections 80C, 80D, etc.).<\/li>\n\n\n\n<li><strong>Apply tax slab rates<\/strong> to calculate gross tax liability + cess\/surcharge.<\/li>\n\n\n\n<li><strong>Subtract TDS\/TCS<\/strong> already deducted or expected.<\/li>\n\n\n\n<li>If net tax liability &gt; &#8377;10,000, compute installment amounts per schedule:\n<ul class=\"wp-block-list\">\n<li>e.g., for &#x20B9;1,00,000 tax due: 1st = &#x20B9;15,000; by Sep should be &#x20B9;45,000 (so next &#x20B9;30,000).<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 id=\"interest-for-late-short-payments\" class=\"wp-block-heading\">Interest for Late\/Short Payments<\/h2>\n\n\n\n<p>Missing or underpaying installments may lead to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Section 234C<\/strong>: 1% per month interest for the delay in each installment.<\/li>\n\n\n\n<li><strong>Section 234B<\/strong>: If total advance tax paid is less than 90% by 31 March, interest @1% per month on the shortfall.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"how-to-pay-advance-tax-online\" class=\"wp-block-heading\">How to Pay Advance Tax Online<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Visit the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-e-filing\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax e-Filing<\/a> portal &#x2192; select <strong>e-Pay Tax<\/strong>.<\/li>\n\n\n\n<li>Enter PAN and mobile, authenticate with OTP.<\/li>\n\n\n\n<li>Choose <em>Income Tax<\/em> and <em>Advance Tax (100)<\/em> for the relevant assessment year.<\/li>\n\n\n\n<li>Enter tax amount, select payment method (Net Banking\/UPI\/Debit Card).<\/li>\n\n\n\n<li>Complete payment and save the <strong>BSR code and Challan Serial Number<\/strong> for return filing.<\/li>\n<\/ol>\n\n\n\n<h2 id=\"quick-example\" class=\"wp-block-heading\">Quick Example<\/h2>\n\n\n\n<p><em>Ajay<\/em> estimates &#x20B9;200,000 total tax liability:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>After &#8377;50,000 TDS, net due = &#8377;150,000 (&gt;&#8377;10k, so advance tax applies).<\/li>\n\n\n\n<li>Installments:\n<ul class=\"wp-block-list\">\n<li>By 15 June &#x2192; &#x20B9;22,500 (15% of &#x20B9;150k)<\/li>\n\n\n\n<li>By 15 Sept &#x2192; &#x20B9;67,500 total (another &#x20B9;45,000)<\/li>\n\n\n\n<li>By 15 Dec &#x2192; &#x20B9;75% overall = &#x20B9;112,500 (another &#x20B9;45,000)<\/li>\n\n\n\n<li>By 15 Mar &#x2192; remaining &#x20B9;37,500<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Any delay or shortfall incurs interest under Sections 234B\/234C.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"why-it-matters\" class=\"wp-block-heading\">Why It Matters<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prevents penalty interest charges.<\/li>\n\n\n\n<li>Helps you manage finances by splitting tax payments.<\/li>\n\n\n\n<li>Keeps tax compliance smooth and stress-free.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Advance tax is a system in India where taxpayers pay their income tax in parts during the financial year, instead of in a single lump sum at year-end. It&#x2019;s called a &#x201C;pay-as-you-earn&#x201D; system and helps avoid a big tax payment or interest charges later. Who Must Pay? You&#x2019;re required to pay advance tax if: Due [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7783","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7783\/revisions"}],"predecessor-version":[{"id":7784,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7783\/revisions\/7784"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}