Advance tax
Income tax paid during the year in four instalments, instead of all at once when you file.
Advance tax is pay-as-you-earn income tax. If tax isn’t cut at source from all your income, you pay the rest in four instalments during the year. Read more in advance tax: paying your tax in four parts.
Questions people ask
What is advance tax?
Advance tax is income tax you pay during the year, in instalments, rather than in one go when you file your return. It applies when your tax for the year, after tax cut at source, is 10,000 rupees or more.
When is advance tax due?
In four parts: at least 15% of the year's tax by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. The amounts are cumulative. Check the current rules before you pay.
Who doesn't have to pay advance tax?
A resident senior citizen, aged 60 or more, with no income from a business or profession is exempt, per the Income Tax Department. People whose tax is fully covered by TDS, like most salaried people with only a salary, usually owe none.
One money lesson, in your inbox
A short, plain money lesson built from real news. Free. Unsubscribe anytime.
We will never spam you or sell your details. How we handle your email