Advance Tax for Individual Tax Payers

An individual shall be liable to pay Advance Income Tax on income of current financial year on estimation basis, during a financial year in which such income is earned if the amount of income tax payable on such estimated income after deducting TDS exceeds ten thousand rupees or more. Individuals are liable to pay in three installments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified below:

Due date of instalment Amount payable
On or before the 15th September 30% of such advance tax.
On or before the 15th December 60% of such advance tax. (inclusive of first instalment)
On or before the 15th March 100% of such advance tax. (inclusive of earlier two instalments)

Provisions of advance tax payment:

  • No advance tax is payable if the total tax liability after reducing the tax deducted at source is less than Rs. 10,000.
  • If advance tax paid by the assessee is less than 90 per cent of the total tax payable by 31st March, then interest u/s 234B shall be paid @1% per month on the deficit amount from April 1 of the following year till the date of filling of return.
  • If advance tax is not paid in full for instalments falling due on 15th September and 15th December, interest @1% on the short amount for 3 months is to be paid u/s 234C.
  • If advance tax is not paid in full for instalments falling due on 15th March, interest @1% on the short amount for 1 month is to be paid u/s 234C.

However, provision of section 234C shall not apply to any short fall of the tax due on the income where such short fall is on account of under-estimate or failure to estimate

  • Capital Gains;
  • Any winning from lottery, crossword puzzles, races, card game and other game of any sort or from gambling or betting of any form or nature whatsoever.

and the assessee has paid the whole amount of tax payable in respect of such income by the 31st day of March of the financial year. Timely and efficient tax planning go long way in lowering your total taxes by employing and taking advantages of in-built provisions of tax exemptions, deductions, concessions, rebates, reliefs, allowances and other benefits granted by the tax laws so that the incidence of tax is reduced. We at have the expertise to guide you in lowering your tax outgo and thus enhancing your total take away. We at provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning. Please join us now in pursuit of simplifying individual taxation! 

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