What Is Advance Tax?
Advance Tax means paying income tax in advance on income earned during the financial year. It applies to:
- Salaried individuals with additional income
- Freelancers and professionals
- Business owners and self-employed individuals
- Taxpayers with capital gains, rental income, or interest income
If your total tax payable after TDS is ₹10,000 or more in a financial year, advance tax payment becomes mandatory.
Advance Tax Due Dates
Advance tax must be paid in the following instalments:
| Due Date | Advance Tax Payable |
|---|---|
| 15 June | 15% of total tax |
| 15 September | 45% of total tax |
| 15 December | 75% of total tax |
| 15 March | 100% of total tax |
Presumptive taxpayers can pay 100% advance tax by 15 March.
Step-by-Step Process to Pay Advance Tax on Income Tax Portal
Step 1: Visit the Income Tax e-Filing Portal
Go to the official income tax e-filing website and log in using:
- PAN
- Password
- Captcha code
Step 2: Go to e-Pay Tax
Navigate to:
Dashboard → e-Pay Tax → New Payment
Step 3: Select Income Tax as Payment Type
Choose Income Tax and click on Proceed.
Step 4: Select the Correct Challan
Choose Challan No. ITNS 280 for advance tax payment.
Select:
- Tax applicable: (Income Tax – Other than Companies / Companies)
- Type of payment: Advance Tax (100)
Step 5: Enter Assessment Year and Payment Details
Fill in:
- Assessment Year
- Address and contact details
- Mode of payment (Net Banking / Debit Card / UPI)
Step 6: Enter Advance Tax Amount
Enter the advance tax amount you wish to pay based on your estimated income and tax liability.
Step 7: Make Payment
Proceed to payment and complete the transaction through your selected bank.
Step 8: Download Challan Receipt
After successful payment:
- Download the challan receipt
- Note the BSR code, challan number, and payment date
These details are required while filing your Income Tax Return.
Important Points to Remember
- Advance tax is based on estimated income, not actual income
- Capital gains tax should be paid in the next instalment after the gain arises
- Late or non-payment attracts interest penalties
- Challan details must be correctly reported in the ITR
Interest for Non-Payment of Advance Tax
- Section 234B: Interest for non-payment or short payment of advance tax
- Section 234C: Interest for delay in payment of advance tax instalments
Timely payment helps you avoid unnecessary financial burden.
Benefits of Paying Advance Tax on Time
- Avoid interest and penalties
- Better cash flow management
- Smooth income tax return filing
- Improved financial discipline
Why Choose Saving Mantra?
Saving Mantra provides expert income tax services including:
- Advance tax calculation and planning
- Online tax payment assistance
- End-to-end ITR filing support
- Compliance advisory for individuals and businesses
Disclaimer
This article is for informational purposes only and does not constitute legal or tax advice. Tax laws and due dates may change from time to time. Readers are advised to consult a qualified tax professional before making advance tax payments. Saving Mantra shall not be responsible for any loss arising from reliance on this information.