Advance Tax in India: Who Must Pay, Due Dates & 234B/234C Interest
By CA Aman Singhal19 June 20265 min read
Advance tax is “pay tax as you earn” — instead of paying everything at year-end, you pay it in instalments during the year. Miss it and you pay interest. Here is who needs to pay, when, and what getting it wrong costs.
Who has to pay advance tax?
Anyone whose total tax for the year, after TDS, is ₹10,000 or more. For most salaried people, TDS on salary already covers it — but you are caught the moment you have extra income your employer doesn’t deduct tax on:
- Capital gains on shares, mutual funds or property
- Interest from fixed deposits, bonds or savings
- Rental income
- Freelance, consulting or business income
Resident senior citizens (60+) with no business income are exempt from advance tax.
The four due dates (FY 2025-26)
- By 15 June — 15% of total tax
- By 15 September — 45% (cumulative)
- By 15 December — 75% (cumulative)
- By 15 March — 100% (cumulative)
Taxpayers under the presumptive scheme (Section 44AD / 44ADA) get a single deadline — pay 100% by 15 March.
Interest for missing it — 234B and 234C
- Section 234B: if you pay less than 90% of your tax by 31 March, 1% simple interest per month applies on the shortfall, from April until you pay.
- Section 234C: if you miss an individual instalment deadline, 1% per month applies for the deferment period on that instalment’s shortfall.
Use our Advance Tax Calculator to work out each instalment and any 234B/234C interest, or let a CA compute and track your instalments for you.
This article is for general information based on provisions for FY 2025-26 and is not individual tax advice. Rules change and exceptions apply — please confirm with a qualified Chartered Accountant before acting.