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The Advance Tax Calculator is an easy-to-use tool that helps you determine how much advance tax you need to pay during the financial year. By entering details like your salary, rental income, business income, capital gains, and any other sources of income (such as interest income and dividend income), the calculator accurately states your total tax liability and breaks it down into advance tax instalments. Calculating advance tax using our advance tax calculator helps you stay compliant, avoid interest, and manage your tax payments more efficiently.
How to use this calculator?
Specify the deductions and exemptions applicable to you
Provide details of taxes paid
| Particulars | Old Regime | New Regime |
|---|---|---|
| Taxable Income | ||
| Income Tax Payable | ||
| Rebate (87A) | ||
| Surcharge | ||
| Health & Education Cess (4%) | ||
| Total Tax Payable |
| Quarter | Old Regime | New Regime |
|---|---|---|
| 15 June | ||
| 15 September | ||
| 15 December | ||
| 15 March |
Advance tax refers to the "pay-as-you-earn" concept where taxpayers are required to pay their taxes in instalments throughout the financial year rather than at the end or while filing ITR. If your estimated tax liability for the financial year is more than ₹10,000 you need to pay advance tax to avoid interest.
Advance tax is applicable to all taxpayers—including
Salaried Individuals with income beyond TDS deduction.
Freelancers and Consultants with irregular income sources.
Business Owners including those under presumptive taxation schemes.
If possible add rental income and other source of income whose total tax liability for a financial year is ₹10,000 or more after accounting for Tax Deducted at Source (TDS).
Calculating advance tax is straightforward if you follow these steps:
1. Estimate Total Income:
Calculate your total income from all sources—salary, business, interest, rental income, capital gains, etc.
2. Deduct eligible Exemptions and Deductions:
Use applicable deductions under Sections like 80C , 80D, and other eligible exemptions. Deduct these from your total income to arrive at your taxable income.
3. Calculate tax liability:
Compute your total tax liability based on the tax slabs under both the regimes.
4. Subtract Prepaid Taxes:
Subtract any taxes already paid i.e., tax deducted at source (TDS), tax collected at source (TCS) and any previous instalments of advance tax paid during the financial year.
5. Determine Advance Tax Payable:
If your estimated liability is more than ₹10,000, calculate your advance tax instalments.
On or before 15th June 2025: 15% of tax liability.
On or before 15th September 2025: 45% of tax liability (-) prepaid taxes.
On or before 15th December 2025: 75% of tax liability (-) prepaid taxes.
On or before 15th March 2026: 100% of tax liability (-) prepaid taxes.
For businesses opting for the presumptive taxation scheme under Sections 44AD or 44ADA, the entire advance tax (100%) needs to be paid by March 15 (1 instalment only).
Consider a taxpayer, Mr. Sharma, with the following details for the financial year:
Income from Salary: ₹20,00,000
Rental Income: ₹2,00,000
Deductions under Section 80C: ₹1,50,000
Tax Deducted at Source (TDS): ₹2,00,000
Step-by-Step Calculation:
Estimate Total Income: ₹20,00,000 + ₹2,00,000 = ₹22,00,000
Deductions: ₹22,00,000 - ₹1,50,000 = ₹20,50,000 (Taxable Income)
Apply Tax Slab:Calculate tax liability based on applicable slabs.
Calculate Total Tax Liability:Let’s assume ₹4,00,000.
Subtract TDS: ₹4,00,000 - ₹2,00,000 = ₹2,00,000 (Advance Tax Payable)
Total Advance Tax Payable: ₹2,00,000
| Due Date | Advance Tax Payable | Amount (₹) |
|---|---|---|
| 15-Jun | 15% of advance tax | 30,000 |
| 15-Sep | 45% of advance tax | 60,000 (90,000-30,000) |
| 15-Dec | 75% of advance tax | 60,000 (1,50,000-90,000) |
| 15-Mar | 100% of advance tax | 50,000 (2,00,000-1,50,000) |
You can pay advance tax online via the Income Tax Department's e-filing portal or through authorized banks using Challan 280. Simply follow these steps:
1. Visit the income tax e-filing portal or the authorised bank's website.
2. Select the "Challan 280" option for income tax payment.
3. Enter details such as PAN, assessment year, and type of payment (advance tax).
4. Complete the payment using net banking, debit card, credit card, UPI and RTGS/NEFT.
Paying advance tax online is quick, secure, and helps ensure timely compliance.
1. Avoid Interest:
Timely payment helps avoid interest and penalties under Sections 234B and 234C.
2. Manage Cash Flows:
Paying in instalments makes it easier to manage cash flows.
3. Compliance:
Ensures compliance with income tax regulations, reducing the risk of scrutiny or notices from tax authorities.
Failing to pay advance tax or underestimating your liability can lead to:
If the taxpayer pays at least 12% of the total tax by June 15 or 36% by September 15, they won’t have to pay any interest on any shortfall for these dates.
To calculate advance tax:
15th June: Pay 15% of total tax liability.
15th September: Pay 45% of total tax liability (cumulative).
15th December: Pay 75% of total tax liability (cumulative).
15th March: Pay 100% of total tax liability.
Old Regime:
New Regime:
For advance tax, calculate your total liability based on the regime and pay according to the instalment schedule.
Rupisafe Private Limited operates independently. The information presented herein is intended solely for educational and informational purposes and should not be construed as financial advice. Before making any financial decisions, it's essential to undertake your own thorough research and analysis. If you're uncertain about any financial matters, we strongly recommend seeking guidance from a qualified financial advisor.