Advance Tax

Advance tax is tax you pay as you earn during the financial year, in installments due on specific dates — rather than paying a lump sum when you file your return. In India, if your estimated tax liability exceeds ₹10,000 in a year, you must pay advance tax in four installments (15%, 30%, 30%, 25%) by 15 June, 15 September, 15 December, and 15 March. Failure to pay advance tax attracts interest at 1% per month under Section 234B of the Income Tax Act 2025.