Question 1

Who has to pay advance tax?

Accepted Answer

Anyone whose tax liability for the year, after TDS and TCS credit, is ₹10,000 or more (Section 208). That includes salaried people with other income such as interest, capital gains or rent where TDS does not cover the full tax. Resident senior citizens aged 60 or above with no income from business or profession are exempt (Section 207).

Question 2

What are the advance tax due dates and percentages?

Accepted Answer

Four cumulative instalments under Section 211: at least 15% of the year's advance tax by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Taxpayers on presumptive taxation under Section 44AD or 44ADA pay the whole amount in one instalment by 15 March. Anything paid by 31 March still counts as advance tax for that year.

Question 3

How is interest under Section 234C calculated?

Accepted Answer

Simple interest at 1% per month on the shortfall at each instalment. For the June, September and December instalments it is charged for three months on the shortfall; for March, for one month. There is a tolerance for the first two: no interest for June if at least 12% has been paid, and none for September if at least 36% has been paid. For presumptive taxpayers it is 1% for one month on any shortfall as at 15 March.

Question 4

How is interest under Section 234B different?

Accepted Answer

234C is for paying instalments late or short during the year. 234B applies when the total advance tax paid by 31 March is less than 90% of the assessed tax. It charges 1% per month, with any part of a month counted as a full month, from 1 April of the assessment year until the date you pay the balance, on the amount by which assessed tax exceeds advance tax paid. The two can apply together.

Question 5

Does TDS count toward advance tax?

Accepted Answer

Yes. Advance tax is computed on tax liability after TDS and TCS credit, so if your employer or bank has already deducted enough, you may owe nothing. The calculator asks for your expected TDS and TCS so the instalments are on the net figure.

Question 6

What if my income is uncertain early in the year?

Accepted Answer

Advance tax is based on your estimate at each due date, and you can revise the estimate at the next instalment. 234C interest is charged on the shortfall against the actual tax for the year, but capital gains and dividend income that arise after an instalment date are excluded from the shortfall for that instalment as long as the tax on them is paid in the remaining instalments.

Question 7

Can I pay the whole year's advance tax in June?

Accepted Answer

Yes. The percentages are minimums. Paying more than required in an early instalment simply reduces or removes what is due later, and there is no interest refund or penalty for paying early.

Question 8

How do I pay advance tax?

Accepted Answer

Through the e-Filing portal, e-Pay Tax, using Challan ITNS 280 with the code for advance tax (100) and the correct assessment year. Keep the challan; it is reported in the return and reconciled in Form 26AS and AIS.

Advance Tax Calculator with 234B & 234C

Know the instalment before the date, and the interest after it

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