Glossary · Income Tax
Advance Tax
Income tax paid in advance during the financial year in four quarterly instalments instead of a lump sum on 31 March.
Advance tax applies to every assessee whose estimated tax liability for the year is ₹10,000 or more after TDS. Due dates are 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March. Interest under Section 234B is levied for short-payment, and Section 234C carries interest for late instalments. Senior citizens (60+) without business income are exempt from advance-tax provisions.
Examples
A freelance consultant earning ₹20 lakh a year with no TDS must pay 15% of her estimated tax by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March.