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Advance tax: every question, answered

Who pays, quarterly instalments, 44ADA concession, interest and salary/freelance combinations.

Last updated 2026-06-15 · Covers FY 2025-26 and FY 2026-27

Plain-language answers, reviewed for publication.

Each question has a shareable anchor, a verdict-first answer, and links into the calculators, calendar, glossary or sibling guide pages where relevant.

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  1. A · Who needs to pay
  2. B · Instalments and dates
  3. C · Interest and mistakes
  4. D · Common scenarios

A · Who needs to pay

1Who has to pay advance tax?

Advance tax applies when estimated tax payable after TDS crosses the statutory threshold. Salary taxpayers can still owe advance tax if TDS does not cover other income such as freelance, rent, interest or capital gains.

2Do salaried people ever pay advance tax?

Estimate total income, reduce TDS/TCS and tax credits, then pay challans before due dates. Keep challan BSR/date/serial details for return filing.

3Does TDS mean I can ignore advance tax?

TDS reduces advance tax but does not always eliminate it. If remaining tax after TDS is above the threshold, advance tax can still be due.

B · Instalments and dates

4What are the advance-tax due dates?

Most taxpayers pay advance tax in four instalments; eligible 44ADA/44AD presumptive taxpayers may have a 15 March concession. Use the compliance calendar for year-specific dates and extension checks.

5How much is due in each instalment?

Most taxpayers pay advance tax in four instalments; eligible 44ADA/44AD presumptive taxpayers may have a 15 March concession. Use the compliance calendar for year-specific dates and extension checks.

6How is advance tax different for 44ADA?

Estimate total income, reduce TDS/TCS and tax credits, then pay challans before due dates. Keep challan BSR/date/serial details for return filing.

C · Interest and mistakes

7What is 234B interest?

234B interest applies when advance tax paid is below the required percentage of assessed tax. It usually runs from the start of the assessment year until payment/assessment.

8What is 234C interest?

234C interest applies to deferment of advance-tax instalments. Paying late reduces further exposure but does not erase interest already triggered.

9I missed an instalment — what should I do now?

Most taxpayers pay advance tax in four instalments; eligible 44ADA/44AD presumptive taxpayers may have a 15 March concession. Use the compliance calendar for year-specific dates and extension checks.

D · Common scenarios

10Salary plus freelance income — how do I estimate advance tax?

Estimate total income, reduce TDS/TCS and tax credits, then pay challans before due dates. Keep challan BSR/date/serial details for return filing.

11Capital gains happened late in the year — do I pay interest?

Capital gains arising late in the year have special practical treatment for advance tax. Pay tax in the remaining instalments after the gain arises to reduce interest exposure.

12How do I use challan payments in the ITR?

Estimate total income, reduce TDS/TCS and tax credits, then pay challans before due dates. Keep challan BSR/date/serial details for return filing.

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This guide is general information for understanding the topic, not advice on your specific situation, and not solicitation of work. Tax positions turn on your full facts and on the law in force for the relevant year. Confirm your position with a qualified professional before acting.