Advance Tax Calculator – Calculate Quarterly Tax Instalments for FY 2025-26

Calculate your advance tax liability and quarterly payment schedule instantly for FY 2025-26. This free calculator helps Indian taxpayers determine exact advance tax instalments due on June 15, September 15, December 15, and March 15, along with potential interest under Sections 234B and 234C. Avoid penalties by paying the right amount on time.

What is Advance Tax?

Advance tax is the income tax you pay during the financial year itself, rather than waiting until the end of the year to pay it all at once. It is also called “pay-as-you-earn” tax. The Income Tax Act requires taxpayers to pay tax in installments as they earn income throughout the year.

If your estimated tax liability for a financial year exceeds Rs 10,000 after deducting TDS (Tax Deducted at Source), you must pay advance tax. This applies to all sources of income including salary (if TDS is insufficient), business income, capital gains, rental income, interest income, and professional fees.

The concept behind advance tax is simple: since you earn income throughout the year, you should pay tax throughout the year. This ensures steady revenue collection for the government and prevents taxpayers from facing a large tax burden at the end of the year.

Who Must Pay Advance Tax in FY 2025-26?

Advance tax is mandatory for most taxpayers. Here is who needs to pay:

Salaried Employees: If your employer deducts sufficient TDS from your salary to cover your entire tax liability, you do not need to pay advance tax separately. However, if you have additional income sources like rental income, capital gains, interest income, or freelance income, and your total tax liability after TDS exceeds Rs 10,000, you must pay advance tax on the additional income.

Self-Employed Professionals and Freelancers: Doctors, lawyers, consultants, freelancers, designers, and other professionals must pay advance tax if their estimated tax liability exceeds Rs 10,000. Since there is no TDS on most self-employed income, the entire tax liability must be paid as advance tax in quarterly installments.

Business Owners: All business owners (proprietorships, partnerships, LLPs, companies) with taxable income must pay advance tax. Companies must pay regardless of the amount, while individuals and firms pay if liability exceeds Rs 10,000.

Investors and Traders: If you earn capital gains from selling shares, mutual funds, property, or other assets, and the tax on these gains exceeds Rs 10,000 after TDS, you must pay advance tax. This includes both short-term and long-term capital gains.

Rental Income Earners: If you receive rental income and your total tax liability (after considering TDS if any) exceeds Rs 10,000, advance tax must be paid.

Senior Citizens (Exception): Senior citizens (60 years and above) who do not have income from business or profession are exempt from paying advance tax. However, if they have business income, they must pay advance tax like any other taxpayer.

Advance Tax Due Dates and Payment Schedule for FY 2025-26

Advance tax must be paid in four installments during the financial year. The due dates and cumulative percentages for FY 2025-26 are:

First Installment: June 15, 2025 Pay at least 15% of your total estimated tax liability by this date.

Second Installment: September 15, 2025 Pay at least 45% of your total estimated tax liability cumulatively by this date. This means if you paid 15% in June, you need to pay another 30% by September 15.

Third Installment: December 15, 2025 Pay at least 75% of your total estimated tax liability cumulatively by this date. If you have paid 45% by September, pay another 30% by December 15.

Fourth Installment: March 15, 2026 Pay 100% of your total estimated tax liability by this date. This is the final installment for FY 2025-26. If you have paid 75% by December, pay the remaining 25% by March 15.

Missing these deadlines or paying insufficient amounts attracts interest under Sections 234B and 234C, which can significantly increase your tax burden.

How to Calculate Advance Tax: Step-by-Step Process

Calculating advance tax involves estimating your total income, computing tax liability, subtracting TDS credits, and dividing the balance into quarterly installments. Follow these steps:

Step 1: Estimate Your Total Income for FY 2025-26

Add up all your income sources for the entire financial year:

• Salary (gross salary minus standard deduction of Rs 50,000)
• Business or professional income (revenue minus expenses)
• Capital gains from sale of assets
• Income from house property (rental income minus standard deduction)
• Income from other sources (interest, dividends, etc.)

Gross Total Income = Sum of all income sources

Step 2: Calculate Deductions

Subtract eligible deductions to arrive at taxable income:

• Section 80C: PPF, ELSS, life insurance premium, home loan principal (up to Rs 1.5 lakh)
• Section 80D: Health insurance premium (up to Rs 25,000 for self, Rs 50,000 if covering parents above 60)
• Section 80CCD(1B): Additional NPS contribution (up to Rs 50,000)
• Section 24(b): Home loan interest (up to Rs 2 lakh)
• Section 80G: Donations to specified institutions
• Other applicable deductions

Taxable Income = Gross Total Income – Total Deductions

Step 3: Calculate Tax Based on Applicable Regime

For FY 2025-26, you can choose between the old tax regime (with deductions) or the new tax regime (without most deductions but lower rates). Most taxpayers benefit from the new regime.

New Tax Regime Slabs for FY 2025-26 (Individuals):

• Up to Rs 4,00,000: Nil
• Rs 4,00,001 to Rs 8,00,000: 5%
• Rs 8,00,001 to Rs 12,00,000: 10%
• Rs 12,00,001 to Rs 16,00,000: 15%
• Rs 16,00,001 to Rs 20,00,000: 20%
• Rs 20,00,001 to Rs 24,00,000: 25%
• Above Rs 24,00,000: 30%

Calculate tax slab-wise and add them up to get base tax.

Step 4: Add Surcharge and Cess

If your income exceeds certain thresholds, surcharge applies:

• Income above Rs 50 lakh: 10% surcharge
• Income above Rs 1 crore: 15% surcharge
• Income above Rs 2 crore: 25% surcharge
• Income above Rs 5 crore: 37% surcharge

Add Health and Education Cess at 4% on (Base Tax + Surcharge).

Total Tax Liability = Base Tax + Surcharge + Cess

Step 5: Subtract TDS Credits

Deduct total TDS already deducted from your income (salary TDS, TDS on interest, professional fees, etc.). You can check TDS credits in Form 26AS or AIS on the Income Tax e-filing portal.

Advance Tax Payable = Total Tax Liability – TDS Credits

If the result is less than Rs 10,000, you are not required to pay advance tax.

Step 6: Divide into Quarterly Installments

Distribute the advance tax payable across the four due dates:

• June 15: 15% of advance tax payable
• September 15: 30% more (cumulative 45%)
• December 15: 30% more (cumulative 75%)
• March 15: 25% more (cumulative 100%)

Real-World Advance Tax Calculation Examples

Example 1: Salaried Employee with Additional Income

Priya is a salaried employee with an annual salary of Rs 12,00,000. She also earns Rs 3,00,000 from freelance consulting and Rs 50,000 from interest on fixed deposits.

Income Calculation:

• Salary: Rs 12,00,000
• Freelance income: Rs 3,00,000
• Interest income: Rs 50,000
• Gross Total Income: Rs 15,50,000

Deductions (New Regime – limited deductions):

• Standard Deduction: Rs 50,000
• Taxable Income: Rs 15,00,000

Tax Calculation (New Regime):

• Up to Rs 4,00,000: Nil
• Rs 4,00,001 to Rs 8,00,000: Rs 4,00,000 × 5% = Rs 20,000
• Rs 8,00,001 to Rs 12,00,000: Rs 4,00,000 × 10% = Rs 40,000
• Rs 12,00,001 to Rs 15,00,000: Rs 3,00,000 × 15% = Rs 45,000
• Total Base Tax: Rs 1,05,000

Cess (4%): Rs 1,05,000 × 4% = Rs 4,200 Total Tax Liability: Rs 1,05,000 + Rs 4,200 = Rs 1,09,200

TDS Credits:

• TDS from salary: Rs 70,000
• TDS from interest: Rs 5,000
• Total TDS: Rs 75,000

Advance Tax Payable: Rs 1,09,200 – Rs 75,000 = Rs 34,200

Quarterly Installments:

• June 15: Rs 34,200 × 15% = Rs 5,130
• September 15: Rs 34,200 × 30% = Rs 10,260
• December 15: Rs 34,200 × 30% = Rs 10,260
• March 15: Rs 34,200 × 25% = Rs 8,550

Example 2: Self-Employed Professional

Rajesh is a freelance software developer with an annual income of Rs 18,00,000 and business expenses of Rs 3,00,000. He has no TDS credits.

Income Calculation:

• Gross receipts: Rs 18,00,000
• Business expenses: Rs 3,00,000
• Net business income: Rs 15,00,000

Deductions (Old Regime for better benefit):

• Section 80C (PPF, ELSS): Rs 1,50,000
• Section 80D (Health insurance): Rs 25,000
• Total Deductions: Rs 1,75,000
• Taxable Income: Rs 13,25,000

Tax Calculation (Old Regime):

• Up to Rs 2,50,000: Nil
• Rs 2,50,001 to Rs 5,00,000: Rs 2,50,000 × 5% = Rs 12,500
• Rs 5,00,001 to Rs 10,00,000: Rs 5,00,000 × 20% = Rs 1,00,000
• Rs 10,00,001 to Rs 13,25,000: Rs 3,25,000 × 30% = Rs 97,500
• Total Base Tax: Rs 2,10,000

Cess (4%): Rs 2,10,000 × 4% = Rs 8,400 Total Tax Liability: Rs 2,18,400

TDS Credits: Rs 0 (no TDS on self-employed income)

Advance Tax Payable: Rs 2,18,400

Quarterly Installments:

• June 15: Rs 32,760
• September 15: Rs 65,520
• December 15: Rs 65,520
• March 15: Rs 54,600

Example 3: Investor with Capital Gains

Amit, a salaried employee, sold equity shares in August 2025, earning long-term capital gains of Rs 5,00,000. His salary TDS is Rs 80,000.

Income Calculation:

• Salary: Rs 10,00,000
• LTCG on equity: Rs 5,00,000
• Gross Total Income: Rs 15,00,000

Tax Calculation:

• Salary taxable income (after standard deduction): Rs 9,50,000
• Tax on salary (new regime): Rs 62,500 + Rs 4,200 cess = Rs 66,700
• LTCG on equity: Rs 5,00,000 – Rs 1,25,000 (exemption) = Rs 3,75,000
• Tax on LTCG: Rs 3,75,000 × 12.5% = Rs 46,875
• Cess on LTCG tax: Rs 46,875 × 4% = Rs 1,875
• Total Tax from LTCG: Rs 48,750

Total Tax Liability: Rs 66,700 + Rs 48,750 = Rs 1,15,450

TDS Credits: Rs 80,000 (salary TDS)

Advance Tax Payable: Rs 1,15,450 – Rs 80,000 = Rs 35,450

Since capital gains were realized in August 2025, advance tax on capital gains must be paid by September 15, 2025 (or subsequent installments). If not paid, interest under Section 234C applies.

Quarterly Installments:

• June 15: Rs 0 (gains not yet realized)
• September 15: Rs 35,450 × 45% = Rs 15,953 (cumulative)
• December 15: Rs 35,450 × 30% = Rs 10,635 (additional)
• March 15: Rs 35,450 × 25% = Rs 8,862 (additional)

How to Use Planmyreturns Advance Tax Calculator

The Planmyreturns Advance Tax Calculator makes computing advance tax effortless. Here is how to use it:

Step 1: Select Taxpayer Type

Choose your taxpayer category: Individual, HUF (Hindu Undivided Family), or Firm/Company. This affects the tax calculation method. Individuals and HUFs use slab rates, while companies have a flat rate (typically 25-30%).

Step 2: Select Residential Status

Indicate whether you are a Resident or Non-Resident. Non-residents face different tax rates and do not get the benefit of certain deductions. For most Indian taxpayers living in India, select “Resident.”

Step 3: Enter Estimated Taxable Income

Input your estimated taxable income for FY 2025-26. This should be your gross income minus all eligible deductions (Section 80C, 80D, standard deduction, home loan interest, etc.). If unsure, estimate conservatively on the higher side to avoid underpayment.

Step 4: Enter TDS Credits

Enter the total TDS expected to be deducted from your income during FY 2025-26. Include salary TDS, TDS on interest, professional fees, rent, and any other TDS. You can check your current TDS in Form 26AS. The calculator subtracts this from your total tax to arrive at advance tax payable.

Step 5: Click Calculate

The calculator instantly displays your total advance tax payable, quarterly installment amounts for each due date (June 15, September 15, December 15, March 15), and estimated interest under Sections 234B and 234C if you underpay. The breakdown table shows base tax, surcharge, cess, and tax-saving tips.

Step 6: Review and Plan

Use the results to plan your quarterly payments. Set reminders for the due dates and ensure you have sufficient funds. If your income changes during the year, recalculate and adjust subsequent installments.

Step 7: Share or Download

Use the “Share plan” button to share your calculation with your spouse, accountant, or financial advisor. Click “Copy link” to save the calculation URL for future reference. The shared link preserves all your inputs.

The Planmyreturns calculator uses the latest FY 2025-26 tax slabs and rates, ensuring accurate calculations. It is designed for Indian taxpayers and handles complex scenarios including surcharges, cess, and TDS adjustments.

Interest on Late or Insufficient Advance Tax Payment

Not paying advance tax on time or paying insufficient amounts attracts interest. There are two types of interest charges:

Section 234B – Interest for Non-Payment or Short Payment of Advance Tax:

If you do not pay at least 90% of your total tax liability through advance tax and TDS by March 31, you are charged interest at 1% per month (simple interest) on the shortfall amount. The interest is calculated from April 1 of the assessment year until the date of actual payment or return filing, whichever is earlier.

Example: Your total tax liability is Rs 1,00,000. You paid Rs 80,000 through advance tax and TDS. Shortfall = Rs 20,000 (20%, which is more than the allowed 10%). Interest under Section 234B = Rs 20,000 × 1% × 12 months (April to March) = Rs 2,400.

Section 234C – Interest for Deferment of Advance Tax Installments:

If you fail to pay each quarterly installment on time or pay less than the required amount, interest at 1% per month (simple interest) is charged on the shortfall for the period from the due date until the date of payment or March 31, whichever is earlier.

The interest is calculated separately for each installment:

• If June installment is short: Interest from June 15 to the date paid or March 31 (maximum 9-10 months)
• If September installment is short: Interest from September 15 (maximum 6-7 months)
• If December installment is short: Interest from December 15 (maximum 3-4 months)
• March installment shortfall: Interest for 1 month

Example: Your advance tax payable is Rs 1,00,000. Required installments: June 15 (Rs 15,000), September 15 (Rs 30,000), December 15 (Rs 30,000), March 15 (Rs 25,000).

You paid: June 15 (Rs 10,000), September 15 (Rs 20,000), December 15 (Rs 30,000), March 15 (Rs 25,000).

Shortfalls:

• June: Rs 5,000 short – Interest = Rs 5,000 × 1% × 9 months = Rs 450
• September: Rs 15,000 short (cumulative 45% required, you paid only 30%) – Interest = Rs 15,000 × 1% × 6 months = Rs 900
• December: No shortfall
• March: No shortfall

Total Section 234C interest: Rs 450 + Rs 900 = Rs 1,350

To avoid these interest charges, always pay at least the required percentage by each due date.

How to Pay Advance Tax Online

Paying advance tax is simple and can be done online in a few steps:

Step 1: Visit the Income Tax e-Payment Portal

Go to https://www.tin-nsdl.com or the official Income Tax e-filing portal’s payment section.

Step 2: Select Payment Type

Choose “Advance Tax (100)” as the payment type from the dropdown menu.

Step 3: Enter Details

Fill in:

• PAN
• Assessment Year: Select AY 2026-27 (for FY 2025-26)
• Type of Payment: Advance Tax
• Mode of Payment: Net Banking, Debit Card, or RTGS/NEFT

Step 4: Enter Amount

Enter the advance tax amount you wish to pay for this installment.

Step 5: Make Payment

Complete the payment through your preferred mode. After successful payment, you will receive a challan (Challan 280) with a CIN (Challan Identification Number).

Step 6: Save Challan

Download and save the challan. The payment typically reflects in your Form 26AS within 7-10 days. Verify that the payment is credited correctly.

Repeat this process for each quarterly installment by the respective due dates.

Revised Advance Tax Estimates During the Year

Your income may change during the financial year due to bonuses, capital gains, business fluctuations, or unexpected income. If your actual income is significantly different from your estimate, you should revise your advance tax payments.

Income Increased: If your income is higher than estimated, recalculate your total tax liability and pay the shortfall in the next installment. For example, if you realized capital gains in November that you did not anticipate, include the tax on those gains in your December 15 and March 15 installments.

Income Decreased: If your income is lower than estimated, you may have already paid more advance tax than required. Do not pay further installments if you have already paid 100% of your revised liability. You will get a refund when you file your income tax return.

The Income Tax Department understands that estimates can be inaccurate. There is no penalty for genuine estimation errors as long as you pay at least 90% of the actual tax liability by March 31 through advance tax and TDS combined.

Advance Tax for Presumptive Taxation Schemes

Taxpayers under presumptive taxation schemes (Section 44AD for business, Section 44ADA for professionals) have a simplified advance tax requirement.

Section 44AD (Presumptive Taxation for Small Businesses): Businesses with turnover up to Rs 2 crore can opt for presumptive taxation. Taxable income is presumed to be 8% of turnover (6% if receipts are digital). Such taxpayers can pay entire advance tax in one installment by March 15, instead of four quarterly installments. No interest under Section 234C applies if the entire amount is paid by March 15.

Section 44ADA (Presumptive Taxation for Professionals): Professionals (doctors, lawyers, consultants, etc.) with gross receipts up to Rs 50 lakh can opt for presumptive taxation at 50% of gross receipts. Like Section 44AD, they can pay entire advance tax by March 15 in one installment without facing Section 234C interest.

This simplified payment schedule reduces compliance burden for small businesses and professionals.

Common Mistakes to Avoid When Paying Advance Tax

Underestimating Income: Many taxpayers underestimate their income to reduce advance tax. This leads to shortfall and interest charges under Sections 234B and 234C. Always estimate conservatively and include all income sources including bonuses, capital gains, and freelance income.

Forgetting Capital Gains: If you sell property, shares, or mutual funds during the year, the capital gains tax must be included in advance tax. Capital gains realized in a quarter must be considered in that quarter’s installment. Not doing so attracts Section 234C interest.

Not Adjusting for TDS: Some taxpayers pay full advance tax without considering TDS already deducted. Always subtract expected TDS from total tax liability before calculating advance tax payable. Overpaying means your money is locked with the government until you get a refund.

Missing Payment Deadlines: Even a day’s delay in payment attracts interest for the entire month. Set reminders well in advance of due dates (June 15, September 15, December 15, March 15) to ensure timely payment.

Using Wrong Assessment Year: When paying advance tax for FY 2025-26, select Assessment Year 2026-27 in the payment portal. Using the wrong assessment year means your payment is not credited correctly.

Not Saving Payment Challans: Always download and save the payment challan (Challan 280) and note the CIN. Verify the payment in Form 26AS after 7-10 days. If there is a mismatch, you need the challan to resolve it with the tax authorities.

Ignoring Quarterly Distribution: Some taxpayers pay a large amount in the last installment (March 15) after paying little or nothing in earlier installments. This attracts Section 234C interest on the shortfall in earlier quarters. Distribute payments as per the required percentages to minimize interest.

Not Revising for Changed Circumstances: If you receive unexpected income (like a bonus or capital gains) during the year, revise your advance tax calculation and pay additional tax in the next installment. Not adjusting leads to underpayment and interest.

Tax Planning Tips to Reduce Advance Tax

While you cannot avoid advance tax if your liability exceeds Rs 10,000, you can reduce it through proper tax planning:

Maximize Deductions Under Section 80C: Invest up to Rs 1.5 lakh in PPF, ELSS (Equity Linked Savings Scheme), NSC, life insurance premiums, home loan principal, or children’s tuition fees. These investments reduce your taxable income, thereby reducing advance tax.

Claim Health Insurance Premium Under Section 80D: Pay health insurance premiums for yourself, spouse, children, and parents. Deduction up to Rs 25,000 (Rs 50,000 if covering parents above 60 years) reduces taxable income.

Contribute to NPS Under Section 80CCD(1B): Additional investment up to Rs 50,000 in National Pension System qualifies for deduction over and above Section 80C limit. This is one of the most effective ways to reduce taxable income.

Claim Home Loan Interest Under Section 24(b): If you have a home loan, claim deduction up to Rs 2 lakh on interest paid. This significantly reduces taxable income for homeowners.

Plan Capital Gains: If you are planning to sell assets, consider the timing. Selling in March instead of April can defer the tax liability by one year. Also, utilize the Rs 1.25 lakh exemption on equity LTCG strategically.

Opt for the Right Tax Regime: Compare tax liability under old regime (with deductions) and new regime (without deductions but lower rates). Choose the regime that results in lower tax. Most taxpayers with high deductions benefit from the old regime.

Time Income Receipts: If possible, defer income to the next financial year to reduce current year’s advance tax. For example, freelancers can delay invoicing for work completed in March to receive payment in April of the next financial year.

Prepay Expenses: Business owners can prepay certain business expenses (like rent, salaries, professional fees) in the current year to reduce taxable income and advance tax.

Always consult a tax advisor before implementing aggressive tax planning strategies to ensure compliance with tax laws.

Advance Tax vs Self-Assessment Tax

Understanding the difference between advance tax and self-assessment tax helps avoid confusion:

Advance Tax: Tax paid during the financial year in quarterly installments (June, September, December, March) before filing the income tax return. It is based on estimated income and tax liability.

Self-Assessment Tax: Tax paid while filing the income tax return if there is any shortfall after considering advance tax and TDS. It is the final balancing payment to match your actual tax liability.

Example: Your actual tax liability for FY 2025-26 is Rs 1,20,000. You paid Rs 90,000 through TDS and Rs 25,000 through advance tax, totaling Rs 1,15,000. When filing your return in July 2026, you pay Rs 5,000 as self-assessment tax to complete your tax payment.

Both advance tax and self-assessment tax are essential components of tax compliance. Advance tax ensures regular tax collection, while self-assessment tax ensures full payment before return filing.

Frequently Asked Questions (FAQ)