1Who has to pay advance tax?
Anyone whose total tax for the year, after TDS, will exceed Rs 10,000 — mainly freelancers, businesses, investors and landlords. Resident senior citizens with no business income are exempt.
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ArticleIf your tax for the year will exceed Rs 10,000, you're required to pay it in advance instalments — and paying online takes only a few minutes. Here's how to pay advance tax correctly.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Estimate your yearly tax, then pay it in instalments online via the income tax portal using the right challan. Here's the step-by-step.
Advance tax applies if your total tax for the year, after TDS, will exceed Rs 10,000. It mainly affects those with income beyond salary — freelancers, businesses, investors and landlords. Resident seniors with no business income are exempt.
Project your total income for the year, compute the tax under your regime, subtract the TDS already deducted, and the balance is what you pay as advance tax. A reasonable estimate is enough — you can adjust later instalments as the picture firms up.
Advance tax is due in four instalments — 15 June (15%), 15 September (45% cumulative), 15 December (75%) and 15 March (100%). Paying on schedule avoids interest under sections 234B and 234C at 1% a month.
Log in to the income tax portal's e-pay tax facility, select advance tax as the payment type for the correct assessment year, enter the amount, and pay via net banking, UPI or card. Use the assessment year, not the financial year, so it's credited correctly.
Keep the challan receipt — it's your proof of payment, and the amount appears in your 26AS as a tax credit. Reconcile it when filing so your advance tax is correctly set off against your final liability.
Anyone whose total tax for the year, after TDS, will exceed Rs 10,000 — mainly freelancers, businesses, investors and landlords. Resident senior citizens with no business income are exempt.
15 June (15%), 15 September (45% cumulative), 15 December (75%) and 15 March (100%). Paying on schedule avoids 1%-a-month interest under sections 234B and 234C.
Use the e-pay tax facility on the income tax portal — select advance tax for the correct assessment year and pay by net banking, UPI or card. Save the challan; it appears in your 26AS.
Unsure how much advance tax to pay? Write to the firm and we'll estimate it and keep you penalty-free.