What is Advance Tax

Advance tax means income tax should be paid in advance instead of lump sum payment at the end of the year end. It is also known as ‘pay as you earn tax’. You need to pay them in installments as per due dates provided by the income tax department.

If your total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. Advance tax applies to all taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older but do not run a business, are exempt from paying advance tax.

The taxpayers who have opted for presumptive taxation scheme have to pay the whole amount of their advance tax in one instalment on or before 15 March. They also have an option to pay all of their tax dues by 31 March. 

Due Dates for payment of Advance Tax

FY 2021 - 2022 ( AY  2022 - 2023 )

Due Date	Advance Tax Payable
On or before 15th June	15% of advance tax less advance tax already paid
On or before 15th September	45% of advance tax less advance tax already paid
On or before 15th December	75% of advance tax less advance tax already paid
On or before 15th March	100% of advance tax less advance tax already paid

Non payment of advance tax will result in levy of interest under 234B and 234C of the Income tax Act, 1961.