Advance Tax Calculator: Meaning, Eligibility, Due Dates & Online Payment
An advance tax calculator helps taxpayers estimate their income tax liability and pay it in installments before the end of the financial year. Known as the “pay as you earn tax”, advance tax is paid in parts during the year instead of a lump sum while filing returns.
Who Should Pay Advance Tax?
Advance tax is applicable when the estimated tax liability is ₹10,000 or more after adjusting TDS or TCS. An advance tax calculator is the simplest way to check if you are liable.
- Salaried Individuals – Not required if only salary income with correct TDS deduction. But if there’s additional income such as rent, capital gains, dividends, or business income, advance tax becomes payable.
- Freelancers & Professionals – Must calculate and pay if liability crosses ₹10,000.
- Businesses – All businesses are required to pay advance tax quarterly.
- NRIs – Applicable if earning income in India with tax liability above ₹10,000.
- Exemptions – Resident senior citizens aged 60+ with no business income.
How to Calculate Advance Tax
An advance tax calculator works by estimating taxable income and applying slab rates.
Steps:
- Estimate Gross Total Income – Include salary, business/profession, house property, capital gains, and other income.
- Apply Deductions – Deduct investments and exemptions under 80C, 80D, 80E, and other sections.
- Calculate Taxable Income – Apply slab rates to arrive at total tax dues.
- Subtract TDS/TCS – Reduce tax already deducted at source.
- Check Balance – If tax payable ≥ ₹10,000, pay advance tax.
Using an advance tax calculator online ensures accuracy and reduces errors.
Advance Tax Due Dates FY 2025-26
| Due Date | Minimum Percentage of Tax Payable |
|---|---|
| June 15 | 15% of total tax liability |
| September 15 | 45% of total tax liability |
| December 15 | 75% of total tax liability |
| March 15 | 100% of total tax liability |
If a due date is a holiday, payment can be made on the next working day without penalty.
How to Pay Advance Tax Online
After calculating liability with an advance tax calculator, the payment can be made online in a few steps:
- Visit the Income Tax e-Payment Portal.
- Select Challan No. ITNS 280.
- Choose “Advance Tax (100)” as the payment type.
- Enter PAN, assessment year, and bank details.
- Make payment using debit card, net banking, or UPI.
- Save the challan receipt for ITR filing.
Penalties for Not Paying Advance Tax
If you don’t pay on time, the Income Tax Act levies interest:
- Section 234B – 1% interest per month for not paying at least 90% of liability by March 15.
- Section 234C – 1% interest per month for missing quarterly installments.
Using an advance tax calculator helps avoid underpayment and penalties.
FAQs on Advance Tax Calculator
It is an online tool that estimates advance tax liability based on income, deductions, and TDS.
Yes. Especially if they earn additional income such as rent, interest, or capital gains not fully covered under TDS.
Resident senior citizens aged 60+ without business income.
It provides accurate estimates, avoids manual errors, and ensures timely payment as per due dates.
Interest under Sections 234B and 234C is charged for underpayment or late payment.