What is Advance Tax? A taxpayer whose Income Tax Liability is more than Rs 10000 in a Financial Year , is liable to pay tax in installments during the year . This tax is called advance tax. If the total tax payable is below Rs 10,000, then the assessee is not obliged to deposit advance tax as per income tax laws. Also, if the main source of income is salary and all other income (like interest) has been declared to the employer, there is no need to deposit advance tax. However, salary income needs to be included if salary details under the previous employer are not given to the new company on joining. Advance Tax for Individuals and HUF

• No advance tax (also written shortly as Adv. Tax) is payable if the total tax liability after reducing the tax deducted at source is less than Rs. 10,000/-.

• If Advance Tax is not paid in full for installments falling due on 15th September and 15th December, interest @1% on the short amount for 3 months is to be paid.

• If Advance Tax is not paid in full for installments falling due on 15th March, interest at the rate of 1% on the short amount for 1 month is to be paid. If you delay payment of the last installment in March by even a day, the assessee will have to pay interest on the entire installment amount.

• W.e.f. 01/04/2012, Senior citizens who do not have any income from business/profession are exempted from the payment of advance tax.

• If the assessee does not pays advance tax at all or if the aggregate paid by March 31 is less than 90 per cent of the total tax payable, interest of 1 per cent per month is levied on the deficit amount from April 1 of the following year till the date of filing of return.

What is the due date for payment of Advance Tax by Individuals & HUF?

Due Date	Amount of Tax
15th September	At least 30% of Tax on total income for the year.
15th December	At least 60% of Tax on total income for the year less advance tax already paid.
15th March	100% of Tax on total income for the year less advance tax already paid.

Advance Tax for Non-Individuals 

• No advance tax is payable if the total income tax liability after reducing the tax deducted at source is less than Rs. 10000/-

• If Advance Tax is not paid in full for installments falling due on 15th June (for Corporates only), 15th September and 15th December, interest at the rate of 1% on the short amount for 3 months is to be paid.

• If Advance Tax is not paid in full for installments falling due on 15th March, interest at the rate of 1% on the short amount for 1 month is to be paid. If the payment of the last installment in March is delayed by even a day, interest is to be paid on the entire installment amount.

• If the assessee does not pays advance tax at all or if the aggregate amount of tax paid by March 31 is less than 90 per cent of the total tax payable, interest of 1 per cent per month on the deficit amount from April 1 of the following year till the date of filing return has to be paid.

What is the due date for payment of Advance Tax for Companies?

Due Date	Advance Tax Installment Amount
15th June	At least 15% of Tax on total income for the year.
15th September	At least 45% of Tax on total income for the year less advance tax already paid.
15th December	At least 75% of Tax on total income for the year less advance tax already paid.
15th March	100% of Tax on total income for the year less advance tax already paid.

What is the penalty for non deposit of advance tax?  In case of default (non- payment, short-payment or deferment in payment) of advance tax, interest is charged in addition to the tax payable amount. (i) Interest U/S 234A: INTEREST FOR DEFAULT IN FURNISHING RETURN OF INCOME For late or non furnishing of return, simple interest @ 1% for every month or part thereof is charged from the due date of filing of return to the date of furnishing of return, on the tax as determined u/s 143(1) or on regular assessment as reduced by TDS/advance tax paid or tax reliefs, if any. (ii) Interest U/S 234B: INTEREST FOR DEFAULT IN PAYMENT OF ADVANCE TAX If the advance tax paid by the assessee is less than 90% of the assessed tax(shortfall of payment of Advance tax by more than 10% ) simple interest @ 1% per month or part thereof is chargeable. It is calculated from 1st April of the assessment year to the date of processing u/s 143(1) or to the date of completion of regular assessment. (iii)Interest U/S 234C: INTEREST ON DEFERMENT OF ADVANCE TAX If advance tax paid by 15th September is less than 30% of advance tax payable, simple interest @ 1% is payable for three months It is  determined on returned income as reduced by TDS/TCS/Amount of advance tax already paid or tax relief, if any, under Double Tax Avoidance Agreement with forgiving contribution. Similarly, if amount of tax paid on or before 15th December is less than 60% of tax due on returned income, interest @ 1% per month is to be charged for 3 months on the amount stated as above. Again, if the advance tax paid by 15th March is less than tax due on returned income, interest @ 1% per month on the shortfall is to be charged for one month.