Advance Tax Calculator
Calculate Advance Tax Liability for FY 2024-25
Advance Tax Summary
Advance Tax Calculation Breakdown
| Component | Details |
|---|---|
| Taxable Income | ₹0 |
| Base Tax | ₹0 |
| Surcharge | ₹0 |
| Cess (4%) | ₹0 |
| Total Tax | ₹0 |
| TDS Credits | ₹0 |
| Advance Tax Payable | ₹0 |
| June 15 (15%) | ₹0 |
| Sep 15 (45%) | ₹0 |
| Dec 15 (75%) | ₹0 |
| Mar 15 (100%) | ₹0 |
| Interest (234B) | ₹0 |
| Interest (234C) | ₹0 |
| Tax Saving Tips | - |
For many taxpayers, income tax is not just an annual event. If your total tax liability for the financial year is expected to be ₹10,000 or more, you are required to pay tax in installments throughout the year. This system is known as Advance Tax. Our Advance Tax Calculator is a comprehensive tool designed to help you accurately estimate your liability, manage your quarterly payments, and avoid interest penalties.
This guide will walk you through how to use the calculator and explain the core principles of advance tax, including the implications of interest under Sections 234B and 234C, empowering you to stay compliant and manage your finances effectively.
Author’s Note: This calculator provides an estimate based on the data you enter and current tax laws, which are subject to change. It is intended for informational purposes only and should not be considered as legal or tax advice. For personalized advice regarding your specific financial situation, it is always recommended to consult with a qualified chartered accountant or tax professional.
What is Advance Tax and Who Needs to Pay It?
Advance tax, as the name suggests, is the practice of paying your income tax in advance, in installments, throughout the financial year, instead of as a lump sum at the end. It is essentially a “pay-as-you-earn” model of taxation.
Who is liable to pay advance tax? Any individual, HUF, firm, or company whose estimated tax liability for the financial year is ₹10,000 or more is required to pay advance tax. This applies to both salaried individuals and those with business or professional income.
The Importance of Paying Advance Tax on Time: Due Dates & Penalties
The Income Tax Act mandates that advance tax be paid in four quarterly installments. Missing these due dates or underpaying the required amount can lead to interest penalties.
Advance Tax Due Dates (for all taxpayers except those opting for the presumptive taxation scheme):
- On or before June 15: 15% of total advance tax
- On or before September 15: 45% of total advance tax
- On or before December 15: 75% of total advance tax
- On or before March 15: 100% of total advance tax
Failure to adhere to this schedule can attract interest under Section 234C for deferment of installments. Furthermore, if the total advance tax paid by the end of the financial year is less than 90% of your assessed tax, interest under Section 234B is levied. Our calculator helps you avoid these penalties by providing a clear payment schedule.
How to Use the Advance Tax Calculator
Our calculator simplifies these complex calculations. Follow these steps:
- Select Your Taxpayer Type: Choose whether you are an Individual, HUF, or a Firm/Company, as tax rates vary.
- Enter Your Taxable Income: Input your estimated net taxable income for the year after considering all eligible deductions (like those under Section 80C, 80D, etc.).
- Enter Your TDS Credits: Input the total amount of Tax Deducted at Source (TDS) that has already been deducted from your income (e.g., from your salary or interest income). This amount will be subtracted from your total tax liability to determine your advance tax payable.
- Calculate Your Liability: The tool will instantly compute your total advance tax liability and break it down into the four quarterly payments you need to make.
Why Plan with an Advance Tax Calculator?
- Accurate Liability Estimation: Get a precise estimate of your tax outgo for the year, which helps in better financial planning.
- Avoid Interest Penalties: The calculator provides a clear quarterly payment schedule, helping you pay the correct amount on time and avoid interest charges under Sections 234B and 234C.
- Effective Cash Flow Management: By knowing your tax obligations in advance, you can manage your business or personal cash flow more effectively without facing a large, unexpected tax bill at the end of the year.
- Factor in TDS Credits: The tool correctly accounts for the tax that has already been paid via TDS, ensuring you don’t overpay your advance tax.
Frequently Asked Questions (FAQs)
What is Advance Tax?
Advance Tax is the income tax paid in installments throughout the financial year, rather than as a single payment at the end. It’s a “pay-as-you-earn” system for taxpayers with a liability of ₹10,000 or more.
Who is required to pay Advance Tax?
Any taxpayer—including individuals, HUFs, and companies—whose estimated tax liability for the financial year is ₹10,000 or more must pay advance tax. Senior citizens without any business or professional income are exempt.
What happens if I don’t pay advance tax on time?
If you miss the quarterly due dates or pay less than the required installment amount, you will be liable to pay interest under Section 234C. If your total advance tax paid is less than 90% of your final tax liability, you will also be charged interest under Section 234B.
How does TDS affect my advance tax calculation?
Tax Deducted at Source (TDS) is the tax already deducted from your income by payers like your employer or bank. This amount is considered as tax already paid. Your advance tax liability is calculated on your total tax liability after subtracting the TDS that has already been deducted.