Advance Tax for Individual Tax Payers

Advance tax for individual tax payersSection 208 states that an individual are liable to pay Advance Tax on income earned in current financial year on estimation basis if the amount of income tax payable on such estimated income after deducting TDS exceeds ten thousand rupees or more.

Advance tax is duly paid in three installments by the individuals.

Installments & due dates of advance tax are diagrammatically specified below:


Due date of installment

Amount payable

On or before the 15th September 30% of such advance tax.
On or before the 15th December 60% of total advance tax.
On or before the 15th March 100% of total advance tax.

Other relevant points relating to provisions of advance tax payment –

  • No advance tax liability arises, if the total tax liability after reducing TDS is less than Rs. 10,000.
  • Interest u/s 234B is availed @1% per month on the deficit amount, if advance tax paid by the assessee is less than 90 per cent of the total tax payable by 31st March.
  • For deferment of advance tax, interest is payable u/s 234C.
  • For non-payment or short payment of advance tax, interest u/s 234B is payable.
  • An assessee has to estimate his current income to pay advance tax on the same. For this, no need to submit any estimate to AO, unless the AO feels the same.
  • If the assessee feels that his own estimate of advance tax payable would be less than the one sent by the A.O, he can file estimate of his current income & advance tax payable thereon.
  • In all cases, the tax calculated shall be reduced by the amount of tax deductible at source.

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