Advance tax instalment schedule
| Due date | Cumulative amount payable |
|---|---|
| 15 June | 15% of estimated tax |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
| Presumptive (44AD/44ADA) — 15 March | 100% in one instalment |
Who must pay advance tax
- Salaried people with large interest, rent or capital gains not covered by TDS
- Freelancers, consultants and business owners
- Investors with big capital gains during the year
- NRIs with Indian income not fully covered by TDS
- Not required: resident senior citizens (60+) without business or professional income
Interest if you pay late or short
Section 234C charges 1% simple interest per month on the shortfall in each instalment — for three months on the June, September and December instalments and one month on the March instalment. There is a margin: no 234C interest if you paid at least 12% by June and 36% by September.
Section 234B charges 1% per month from 1 April after the year-end if you paid less than 90% of your assessed tax by 31 March, until you pay it.
Worked example: consultant with ₹4 lakh of tax for the year
- 1Estimated tax for the year after TDS: ₹4,00,000.
- 2By 15 June pay ₹60,000 (15%).
- 3By 15 September pay ₹1,20,000 more (cumulative ₹1,80,000).
- 4By 15 December pay ₹1,20,000 more (cumulative ₹3,00,000).
- 5By 15 March pay the last ₹1,00,000.
Paying on schedule avoids 234B and 234C interest entirely.
