Advance Tax & Penalty Calculator
Calculate quarterly advance tax installments (15%, 45%, 75%, 100%) and verify interest penalties under Sections 234B and 234C for freelancers, professionals, and salaried taxpayers with other income.
Advance Tax Rules, Due Dates & Interest Penalties in India
Under the "Pay As You Earn" scheme (Section 208 of the Income Tax Act, 1961), taxpayers must pay income tax in advance throughout the financial year rather than in a lump sum at the time of filing ITR.
Official Advance Tax Schedule & Safe Harbor Buffers
| Installment Due Date | Cumulative Mandatory % | Safe Harbor Minimum | Sec 234C Interest Formula |
|---|---|---|---|
| On or before June 15 | 15% of Net Tax | 12% | 1% per month × 3 months on shortfall |
| On or before September 15 | 45% of Net Tax | 36% | 1% per month × 3 months on shortfall |
| On or before December 15 | 75% of Net Tax | 75% | 1% per month × 3 months on shortfall |
| On or before March 15 | 100% of Net Tax | 100% | 1% per month × 1 month on shortfall |
Frequently Asked Questions (FAQs)
Who is required to pay Advance Tax in India? ▼
Any taxpayer (salaried, freelancer, consultant, or business) whose estimated total tax liability for the financial year, after deducting TDS/TCS, equals or exceeds ₹10,000 must pay advance tax. Resident senior citizens (60+) without business income are exempt.
What are the advance tax installment due dates? ▼
For regular taxpayers: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. For taxpayers under presumptive taxation (Sec 44AD/44ADA), 100% is payable in a single installment by March 15.
How does interest under Section 234C get calculated? ▼
Section 234C levies simple interest at 1% per month for 3 months on any shortfall below 15% (Q1), 45% (Q2), and 75% (Q3), and 1% for 1 month on shortfall below 100% (Q4). Safe harbor buffers waive Q1 penalty if at least 12% is paid, and Q2 penalty if at least 36% is paid.
What is the penalty under Section 234B? ▼
Section 234B triggers if you fail to pay advance tax or if the total advance tax paid by March 31 is less than 90% of your assessed net tax. Interest is charged at 1% per month from April 1 of the assessment year until full payment.