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Advance Tax Calculator: FY 2026-27 / AY 2027-28

Last verified: 24 Sept 2026

Statutory source: Income Tax Department (CBDT) · Sections 208, 209, 211.

⚠️ Surcharge Disclaimer:Computations calculate statutory quarterly payment schedules (15%, 45%, 75%, 100%) on base estimated tax. Surcharge on taxable income exceeding ₹50 Lakh (10% to 25%) is not modeled. Taxpayers with high net worth should consult a CA.
₹

Total income tax payable for the financial year after deducting TDS/TCS

Results

Advance Tax Status
₹1,00,000
Quarterly Instalment Breakdown
15 JuneCumulative: 15%
₹15,000
15 SeptemberCumulative: 45%
₹30,000
15 DecemberCumulative: 75%
₹30,000
15 MarchCumulative: 100%
₹25,000

Threshold: Required only when net tax liability exceeds ₹10,000. Non-business resident senior citizens (60+) are exempt.

How Advance Tax Works in India (Pay-As-You-Earn Scheme)

Advance tax, governed by Sections 207 to 219 of the Income-tax Act, 1961, is India's "pay-as-you-earn" direct taxation mechanism. Under this scheme, taxpayers must discharge their income tax liability in periodic quarterly installments throughout the financial year in which income is earned, rather than deferring the entire tax payment until the annual return filing date.

1. Mandatory Payment Condition (Section 208):
Advance Tax is Required IF: Estimated Annual Tax Payable − (TDS + TCS + Tax Credits) ≥ ₹10,000

2. Statutory Quarterly Installment Schedule (Section 211):
• Installment 1 (On or before 15 June): 15% of estimated total tax liability
• Installment 2 (On or before 15 September): 45% cumulative − amount previously paid (incremental 30%)
• Installment 3 (On or before 15 December): 75% cumulative − amounts previously paid (incremental 30%)
• Installment 4 (On or before 15 March): 100% cumulative − amounts previously paid (incremental 25%)

3. Presumptive Taxation Exception (Sec 44AD / 44ADA):
Eligible businesses and professionals opting for presumptive taxation pay 100% of advance tax in a single installment on or before 15 March.

4. Statutory Interest Penalties for Delay or Shortfall:
• Section 234C: 1% simple interest per month for 3 months on quarterly installment shortfalls.
• Section 234B: 1% simple interest per month from 1 April if cumulative advance tax paid is <90% of assessed tax.

Step-by-Step Worked Example (Default Scenario)

Consider an individual consultant, freelancer, or taxpayer with an estimated net annual income tax liability of ₹1,00,000 after deducting all TDS and TCS credits:

Instalment Due DateStatutory Cumulative %Cumulative Target (₹)Quarterly Payment DueSafe-Harbor ThresholdSection 234C Consequence
15 June (Q1)15% Cumulative₹15,000₹15,00012% (₹12,000)1% / month for 3 months on shortfall if cumulative <12%.
15 September (Q2)45% Cumulative₹45,000₹30,00036% (₹36,000)1% / month for 3 months on shortfall if cumulative <36%.
15 December (Q3)75% Cumulative₹75,000₹30,00075% (₹75,000)1% / month for 3 months on shortfall from ₹75,000.
15 March (Q4)100% Cumulative₹1,00,000₹25,000100% (₹1,00,000)1% / month for 1 month on shortfall from ₹1,00,000.
Full Financial Year Total100% Discharged₹1,00,000₹1,00,000 (100%)≥90% by 31 MarchZero interest penalty under Section 234B and Section 234C.

Statutory Exemptions & Special Rules

  • Senior Citizens Exemption (Sec 207(2)): Resident individuals aged 60 years or older who do not have any income from business or profession are entirely exempt from advance tax.
  • Salaried Employees: If salary is the sole income source and the employer appropriately deducts TDS under Section 192, standalone advance tax payment is unnecessary. However, non-salary income (rent, capital gains, interest) exceeding TDS deductions triggers advance tax obligations.
  • Capital Gains & Dividend Influx: Since capital gains and dividend income cannot be accurately forecasted, the proviso to Section 234C waives interest penalties provided the tax is deposited in remaining installments after the date of realization.
  • Payment Mechanism: Advance tax is deposited online through the Income Tax e-filing portal via Challan 280 / e-Pay Tax selecting "Advance Tax (100)" as the type of payment.

Penal Interest Mechanics (Sections 234B & 234C)

The Income-tax Act enforces strict compliance through compounding interest charges on late or inadequate payments:

  • Section 234C (Deferment Interest): Charged at 1% simple interest per month for 3 months each on shortfalls at the June 15, Sept 15, and Dec 15 gates (1 month for March 15).
  • Safe-Harbor Gateways: Taxpayers are protected from 234C interest if they pay at least 12% by 15 June and at least 36% by 15 September.
  • Section 234B (Shortfall at Year-End): If cumulative advance tax paid by 31 March is less than 90% of the final assessed tax liability, interest at 1% per month runs from 1 April of the Assessment Year until the date of actual payment.
Need help calculating quarterly installments and avoiding penal interest?Read our complete statutory walkthrough: Advance Tax in India: The Quarterly Calendar and How to Avoid Section 234B & 234C Penal Interest for safe-harbor rules and presumptive taxation deadlines.
Wondering how TDS credits offset your quarterly advance tax liability?Read our comparison on TDS vs. Advance Tax: Key Differences, Payment Responsibilities, and Form 26AS Reconciliation.
Booked profits on stocks, mutual funds, or property?Learn how revised capital gains tax rules work and how Section 234C protects windfalls in our guide: Capital Gains Tax in India (Post-Budget 2024): Rates, Holding Periods, and the Real Estate Indexation Rule.

Frequently asked questions

Who is required to pay advance tax in India?
Under Section 208 of the Income-tax Act, 1961, every individual, professional, freelancer, and corporate taxpayer whose estimated total tax liability for the financial year (after deducting TDS and TCS) is ₹10,000 or more is required to pay advance tax.
Are senior citizens exempt from paying advance tax?
Yes. Under Section 207(2), a resident senior citizen (aged 60 years or above) who does not have any income chargeable under the head "Profits and gains of business or profession" is fully exempt from paying advance tax.
What interest penalty is levied for missing advance tax deadlines?
Failure to pay installments or paying less than statutory percentages attracts simple interest at 1% per month under Section 234C. If less than 90% of assessed tax is paid by 31st March, interest at 1% per month is also charged under Section 234B from 1st April of the assessment year until full payment.
What are the four advance tax due dates for individual taxpayers?
The statutory due dates are: 15% on or before 15 June; 45% cumulative on or before 15 September; 75% cumulative on or before 15 December; and 100% on or before 15 March.
How do salaried employees pay advance tax?
Salaried employees whose employer deducts TDS on salary generally do not need to pay advance tax unless they have substantial additional income (such as capital gains, rental income, or dividend income) that was not reported to the employer on Form 12BB.

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Estimated Advance Tax Due

₹1,00,000