Advance Tax is the tax that
individuals and businesses need to pay in instalments before the end of the
financial year, instead of waiting for the usual tax filing deadline. It
applies to those whose total tax liability exceeds ₹10,000 in a financial
year. This includes salaried individuals with additional income (like
rent, capital gains, or interest), freelancers, and businesses.
Calculate Your Advance Tax Liability
- Estimate
your total income (including salary, business income, capital gains, rental
income, etc.).
- Deduct
eligible deductions (like under Section 80C, 80D, etc.)
- Compute
tax liability as per applicable income tax slabs.
- Deduct
TDS already paid (if applicable).
- If
the remaining tax is more than ₹10,000, advance tax payment is required.
Advance Tax Due Dates
|
Installment |
Due
Date |
Tax
Payable (%) |
|
1st
Installment |
June
15th |
15%
of total tax liability |
|
2nd
Installment |
September
15th |
45%
of total tax liability (cumulative) |
|
3rd
Installment |
December
15th |
75%
of total tax liability (cumulative) |
|
4th
Installment |
March
15th |
100%
of total tax liability |
Steps to make Advance Tax Payment:
Step 1: Visit the Income Tax e-Filing Portal
Visit the Income Tax e-Filing Portal: https://eportal.incometax.gov.in/iec/foservices/#/login and enter your PAN and Password to log in.
Step 2: Navigate to the e-Pay Tax Section
1. Once logged in, go to "e-File" → "e-Pay Tax" from the dashboard.
2. Click on "New Payment" to initiate the payment process.
Step 3: Select the Tax Payment Type
1. 1. Select "Proceed" under Income Tax.
2. Choose the correct Assessment Year (AY):
(For eg., FY 2024-25, select AY 2025-26)
3. Select “Advance Tax” or “Self-Assessment Tax” as the payment type and click "Continue".
Step 4: Enter Your Advance Tax Amount
Fill
your instalment tax amount that you are paying, and press continue for payment.
Step 5: Select Payment Mode and Complete the Transaction
Choose your preferred payment mode from the available
options. Click "Continue" to proceed.
Review the payment details carefully, make corrections if
needed, and agree to the terms. Click "Submit to Bank" to complete
the transaction. Once the payment is successful, Download the payment challan
for future reference.
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