Advance Tax Calculator for FY 2025-26
Quarter-wise installments, 234B/234C penalty simulator, senior citizen exemption - Sections 208/211/234
Income Details
Your Advance Tax
| Quarter | Due Date | Pay This Quarter | Status |
|---|
Installment Amounts (Rs)
Estimates based on gross income and stated deductions. Consult a CA for filing-year assessment.
What is Advance Tax and Who Must Pay It
Advance tax is income tax paid in installments during the financial year itself - rather than in a lump sum at the time of filing your ITR. The concept is "pay as you earn." It applies to salaried employees, freelancers, self-employed professionals, and business owners alike.
Who must pay: Under Section 208 of the Income Tax Act, any taxpayer whose estimated tax liability for the year is Rs 10,000 or more - after subtracting TDS already deducted - must pay advance tax.
Who is exempt: Resident senior citizens aged 60 years or above who do NOT have income from business or profession are fully exempt under Section 207. All others - including senior citizens with business income - must comply.
Salaried employees: If your employer deducts sufficient TDS, your advance tax liability may be nil. But if you have income from rent, freelance work, capital gains, or interest on which TDS is not deducted, you need to estimate and pay advance tax on that additional amount.
Advance Tax Due Dates for FY 2025-26
The installment schedule under Section 211 has four deadlines. Each is cumulative - by September 15 you must have paid 45% of total estimated tax, not just 30% more.
| Installment | Due Date | Cumulative % of Annual Tax |
|---|---|---|
| 1st Installment | June 15, 2025 | 15% |
| 2nd Installment | September 15, 2025 | 45% |
| 3rd Installment | December 15, 2025 | 75% |
| 4th and Final | March 15, 2026 | 100% |
Exception for presumptive taxpayers: Taxpayers under Section 44AD (business) or Section 44ADA (professionals) pay their entire advance tax in one installment by March 15. No June, September, or December installments are required.
How to Calculate Advance Tax
- Estimate your total income for the full financial year from all sources
- Subtract applicable deductions. Under new regime only standard deduction Rs 75,000; under old regime also 80C, 80D, HRA exemption, home loan interest etc.
- Apply slab rates to get base tax. Add surcharge if income exceeds Rs 50 lakh. Add 4% cess.
- Subtract TDS that has been or will be deducted during the year.
- If the remaining amount is Rs 10,000 or more, that is your advance tax liability. Split it across installments per Section 211.
Worked Example - Salaried, Rs 18 Lakh, New Regime
Advance Tax Calculation - FY 2025-26
Installment breakdown: Rs 15,120 by Jun 15 | Rs 45,360 cumulative by Sep 15 | Rs 75,600 cumulative by Dec 15 | Rs 1,00,800 by Mar 15.
New regime FY 2025-26 slabs (Budget 2025): 0-4L at 0%, 4-8L at 5%, 8-12L at 10%, 12-16L at 15%, 16-20L at 20%, 20-24L at 25%, above 24L at 30%.
Penalties for Late or Short Payment
Missing an advance tax installment triggers interest under Sections 234B and 234C. These are interest charges on the tax owed but not paid on time - not penalties in the conventional sense.
Section 234C - Deferment of installments: Applies when each quarterly installment is short-paid. Interest rate is 1% per month (simple).
- June 15 shortfall: 1% x 3 months on (15% of advance tax - amount paid by Jun 15)
- September 15 shortfall: 1% x 3 months on (45% cumulative - cumulative paid by Sep 15)
- December 15 shortfall: 1% x 3 months on (75% cumulative - cumulative paid by Dec 15)
- March 15 shortfall: 1% x 1 month on (100% - cumulative paid by Mar 15)
Section 234B - Default in advance tax payment: Applies if total advance tax paid before March 31 is less than 90% of your assessed tax. Interest is charged at 1% per month from April 1 of the assessment year until the date of full payment.
Use the penalty simulator above - enter the amounts you have already paid per quarter to see your exact 234C liability.