KaroToolsAdvance Tax Calculator
Instantly calculate your advance tax liability, installment amounts, and due dates under Indian tax laws.
The total tax you expect to pay for the entire financial year.
Any Tax Deducted at Source (TDS) or TCS collected so far.
Frequently Asked Questions
Who needs to pay Advance Tax in India?
Any person whose estimated total tax liability for the year (after deducting TDS) is ₹10,000 or more is required to pay Advance Tax.
What are the due dates for Advance Tax?
For normal taxpayers: 15% by June 15, 45% by Sept 15, 75% by Dec 15, and 100% by March 15. For those under presumptive taxation (44AD/44ADA), 100% is due by March 15.
Are senior citizens required to pay Advance Tax?
Senior citizens (aged 60 years or more) who do not have any income from a business or profession are exempt from paying Advance Tax.
What happens if I miss an Advance Tax payment?
If you fail to pay or short-pay your Advance Tax, you will be liable to pay interest under Section 234B (if you fall short of 90% of total tax) and Section 234C (for delayed installments) at the rate of 1% per month.
Disclaimer: All calculators and tools on KaroTools.in are provided for educational and informational purposes only. While we strive to keep the logic updated with the applicable tax rates where verified (FY 2026-27), the results generated are estimates and do not constitute professional financial, legal, or tax advice. We strongly recommend consulting a certified Chartered Accountant or legal professional before making any business decisions or filing your taxes. KaroTools is not responsible for any financial loss, penalties, or compliance errors resulting from the use of this website.
How is Advance Tax Calculated?
Advance tax operates on the principle of "pay as you earn." Instead of paying your entire tax liability at the end of the financial year, the Income Tax Department requires you to pay it in cumulative milestones throughout the year. Our calculator estimates your total annual tax liability, subtracts any TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) that has already been paid on your behalf, and breaks down the remaining balance.
Who Needs to Pay Advance Tax?
Under Section 208 of the Income Tax Act, any individual, freelancer, professional, or business whose estimated tax liability for the financial year is ₹10,000 or more (after deducting TDS/TCS) must pay advance tax. Senior citizens (aged 60 or above) who do not have income from a business or profession are exempt from this rule.
The Cumulative Payment Schedule (Milestones)
Advance tax must be paid in four installments before the financial year ends. These are cumulative targets, meaning each percentage represents the total portion of your estimated annual tax that must be deposited by that date:
Note for Presumptive Taxation (Section 44AD / 44ADA):
If you opt for the presumptive taxation scheme, you do not need to follow the four-installment schedule. Instead, you can pay 100% of your advance tax by March 15 in a single installment.
What Happens If Payments Are Delayed?
Missing a deadline or paying less than the required percentage attracts penal interest under Section 234C (for deferred payment of advance tax) and Section 234B (for default in payment by the end of the year). The interest is generally charged at 1% per month or part of a month on the shortfall amount.
Assumptions & Methodology
- Calculation: Calculates net tax payable by subtracting TDS from total tax liability.
- Milestones: Applies standard cumulative milestones (15%, 45%, 75%, 100%) for normal taxpayers.
- Limitations: Does not calculate penal interest under Sections 234B/234C. It assumes the total estimated tax is accurate for the full year.
- Sources: Rules and milestone dates are based on provisions of the Income Tax Act, 1961, as published by the Income Tax Department of India.
For a deeper dive into filing and avoiding penalties, check out our comprehensive guide on Advance Tax for Freelancers. Ensure you never miss a deadline by checking our Freelancer Tax Calendar 2026.