Advance Tax – What, When & How to Pay

Paying advance tax is essential if your total tax liability for the financial year exceeds ₹10,000. It helps you stay compliant, avoid penalties, and manage your tax obligations in a planned manner.

🧾 When Do You Need to Pay Advance Tax?

You are required to pay advance tax if:

1. ✅ You are salaried but also earn significant income from:

   • Interest

   • Capital gains

   • Rental income

2. ✅ You are a freelancer and earn income from multiple clients.

3. ✅ You run a business, regardless of its size or structure.

📉 How to Calculate Your Advance Tax?

Step 1: Estimate Your Total Income

Include all income sources:

• Salary

• Interest (FDs, savings accounts)

• Rental income

• Capital gains

• Business/freelance earnings

Freelancers/Businesses: Deduct eligible business expenses such as:

• Office rent

• Internet and mobile bills

• Equipment depreciation

• Travel costs

Step 2: Reduce Eligible Deductions

Apply deductions under:

• Section 80C: Investments in PPF, ELSS, LIC, etc.

• Section 80D: Health insurance premiums

• Section 80E: Education loan interest

• Other sections applicable to you

This gives you your taxable income.

Step 3: Calculate Tax on Taxable Income

Apply the latest income tax slab rates to your taxable income to compute the total tax due.

Step 4: Adjust for TDS

Reduce any Tax Deducted at Source (TDS) already reflected in Form 26AS.

Step 5: Pay Advance Tax Online

Make payments in four instalments as per the due dates:

• 15% by June 15

• 45% by September 15

• 75% by December 15

• 100% by March 15

Payment can be made through the Income Tax Portal.

👨‍💼 Let Our Experts Handle It

Don’t stress over complex calculations!
Our expert Chartered Accountants will:

• Calculate your advance tax liability accurately

• Ensure all deductions and expenses are factored in

• Assist in making payments online

• Help you optimize your tax outgo—especially if you’re a freelancer or business owner

🎯 Avoid Penalties. Pay Smart. Stay Compliant.

Let Accura Tax Solutions manage your advance tax needs, so you can focus on growing your income.

Advance Tax Payment Due Dates

Applicable for Financial Years 2018–19 and 2019–20

Advance tax must be paid in installments as prescribed by the Income Tax Department. These deadlines apply to both individual and corporate taxpayers, ensuring compliance and avoidance of interest penalties.

📅 Standard Advance Tax Schedule (Individuals & Corporates)

🧾 Presumptive Taxation Scheme (Sections 44AD & 44ADA)

For taxpayers who have opted for the Presumptive Taxation Scheme—typically applicable to small businesses and professionals:

Note: This applies to both business income under Section 44AD and professional income under Section 44ADA.

💡 Let Our Experts Help You Stay Ahead

Our team of experienced tax professionals will:

• Calculate your advance tax liability accurately

• Ensure deductions are properly accounted for

• Send timely reminders so you never miss a deadline

• Assist with secure online payments through the Income Tax Portal

📞 Contact Accura Tax Solutions today and eliminate the stress of advance tax planning.

Who is Required to Pay Advance Tax?

Advance Tax is applicable to individuals and entities whose total tax liability for a financial year exceeds ₹10,000. It ensures timely revenue collection by the government and helps taxpayers avoid penalties under Sections 234B and 234C of the Income Tax Act.

✅ Applicable to the Following Categories:

👨‍💼 Salaried Individuals

If you are salaried and your total tax liability is ₹10,000 or more, you must pay advance tax.
This includes tax on:

• Salary income

• Interest from FDs or savings

• Rental income

• Capital gains

Note: If your employer has deducted sufficient TDS, and there is no additional liability, advance tax may not apply.

👩‍💻 Freelancers

Freelancers who receive income from multiple clients—such as writers, designers, developers, or consultants—must estimate their annual income, deduct expenses, and pay advance tax if their tax dues exceed ₹10,000.

🏢 Businesses

All business owners, including small traders and entrepreneurs, are required to pay advance tax based on projected profits after deductions.

🧓 Senior Citizens – Special Exemption

Senior citizens aged 60 years or above not engaged in any business are exempt from paying advance tax, regardless of their income from pension, interest, or rent.

📊 Presumptive Income Schemes

🔹 Section 44AD – For Businesses

• Applicable to small businesses with turnover up to ₹2 crore.

• Entire advance tax liability must be paid in a single instalment on or before 15th March.

• Alternatively, payment can be made by 31st March without penalty.

🔹 Section 44ADA – For Professionals

• Applies to professionals like doctors, lawyers, architects, consultants, etc., with gross receipts up to ₹50 lakh.

• Must pay 100% of advance tax liability by 15th March, or latest by 31st March.

💼 Need Help With Advance Tax?

At Accura Tax Solutions, we help:

• Calculate your advance tax liability based on accurate projections

• Identify deductions and apply correct tax slab rates

• Assist in online payment and compliance documentation

📞 Get in touch today and never miss an advance tax deadline again!

Accura Tax Solutions Services

Support in Transitioning Your Advance Tax

1. Purchase a Plan
   Select the expert assistance plan that fits your advance tax needs.

2. Submit Your Queries
   Ask questions or clarify any doubts related to advance tax calculation and filing.

3. Provide Required Documents
   Share all necessary financial documents with our Accura Tax Solutions expert.

4. Complete All Required Actions
   Follow the expert’s guidance to finalize tax calculations and payments.

5. Get Your Work Done!
   Let us handle your advance tax seamlessly while you focus on what matters most.