Advance tax: the four dates, and the 15 December instalment
If your tax for the year will be ₹10,000 or more after TDS, you pay it in instalments. Who must pay, the four due dates, and what late payment costs.
Tax is meant to be paid as you earn, not in one lump at year-end. If your net tax liability for the year is ₹10,000 or more after TDS, you must pay advance tax in instalments.
The four due dates
| By | Cumulative share of the year’s tax |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
The next one is 15 December, so by then at least 75% of your estimated tax for the year should be paid.
Who is covered
- Salaried people with significant other income (rent, interest, capital gains, freelance work)
- Business owners and professionals
- Senior citizens without business income are exempt.
- Taxpayers under the presumptive scheme (44AD / 44ADA) can pay the whole amount in a single instalment by 15 March.
What a miss costs
Interest under sections 234B and 234C applies at 1% per month on the shortfall. It adds up quietly, so a small top-up on time is cheaper than a large correction later.
A practical tip
Capital gains and dividends are taxed in the quarter they arise, so a big sale in November does not need to be paid for by 15 September. Estimate honestly, pay what is due and keep the challan.
Section numbers are shown as under the earlier Act; under the Income-tax Act, 2025 the equivalents carry new numbers. Use the income tax calculator to estimate your yearly tax first.
Not sure how this affects you?
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