Advance Tax — Instalment Schedule & Interest under 234B/234C
Any taxpayer (individual, firm, company) whose net tax after TDS exceeds ₹10,000 must pay advance tax. Senior citizens without business income are exempt. Missed instalments attract Section 234B (1% × months) and Section 234C (1% × 3 months) interest.
- 15 June: 15% of estimated tax
- 15 September: 45% cumulative
- 15 December: 75% cumulative
- 15 March: 100% cumulative
- 44AD/44ADA/44AE: entire tax by 15 March
Definition
Advance Tax
What is Advance Tax?
Any taxpayer (individual, firm, company) whose net tax after TDS exceeds ₹10,000 must pay advance tax. Senior citizens without business income are exempt. Missed instalments attract Section 234B (1% × months) and Section 234C (1% × 3 months) interest.
Key rules to remember
- 15 June: 15% of estimated tax
- 15 September: 45% cumulative
- 15 December: 75% cumulative
- 15 March: 100% cumulative
- 44AD/44ADA/44AE: entire tax by 15 March
Worked example
Freelancer estimated tax ₹1.2L: pays ₹18k by 15 Jun, ₹54k by 15 Sep, ₹90k by 15 Dec, ₹1.2L by 15 Mar. Miss any instalment → 1% × 3 months × short-fall as 234C interest.
Which ITR form applies
- ITR-1 (Sahaj) — Up to ₹50 lakh total income
- ITR-2 — No upper limit
- ITR-3 — No upper limit
- ITR-4 (Sugam) — 44AD ₹3 Cr (digital) / 44ADA ₹75L / 44AE per vehicle
- ITR-5 — No upper limit
- ITR-6 — No upper limit
Ready to file with CA-led accuracy?
Zero-error ITR, refund tracked, notice defence included.
Frequently asked questions
Frequently asked questions
Search or filter by category. Still unsure? A senior CA replies on WhatsApp within minutes.
Related tools, guides & services
Related calculators
Related reading
- Which ITR Form Should You File in 2025? Complete Guide (ITR-1 to ITR-4)
- ITR-1, ITR-2, ITR-3, ITR-4 — Which Form Do You Actually Need to File?
- Which ITR Form Should You File in 2026? (ITR-1 to ITR-7 Explained)
- ITR Filing Last Date FY 2024-25 (AY 2025-26) — Complete Guide
- ITR Filing for Freelancers in India — Complete 2025 Guide
Related services
Compliance guides
People also ask
Can prepayment reduce my interest?+
Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.
via EMI CalculatorCan prepayment reduce my interest?+
Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.
via Personal Loan CalculatorCan prepayment reduce my interest?+
Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.
via Home Loan CalculatorCan prepayment reduce my interest?+
Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.
via Car Loan Calculator