Taxation
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Advance Tax Calculator
Plan your quarterly advance tax instalments and avoid interest penalties. Adjust any input below and your results update instantly.
Understanding advance tax
The concept, the motivation, and what to watch out for.
“Pay as you earn”, not just “pay when you file”
If your net tax liability for a year exceeds ₹10,000, the law expects you to pay it in instalments through the year — not as one lump sum when you file your return. Miss an instalment, and interest starts accruing on the shortfall immediately, at 1% a month.
This calculator takes your estimated tax liability and TDS already deducted, works out what you owe at each of the four instalment dates, and shows exactly how much interest a shortfall at any point actually costs you.
The schedule is cumulative, not quarterly
Each due date requires a running total — 15%, then 45%, then 75%, then 100% — so a shortfall in an earlier instalment keeps costing you interest until you catch up, not just for that one quarter.
Salaried employees aren't automatically exempt
TDS from your salary covers salary income, but capital gains, rental income, freelance income, or interest can still leave you owing advance tax on top of what your employer withholds.
How this calculator helps
Enter your estimated liability, TDS, and what you've actually paid by each date — see your shortfall and interest exposure laid out instalment by instalment.
Plan your instalments
Fill in the starred fields on the left — your results update instantly on the right.
Your details
Presumptive taxpayer (44AD/44ADA)
Switches to a single instalment by 15 March.
≈ ₹1.50 L
e.g. ₹1,50,000 for the year
e.g. ₹60,000 deducted so far
e.g. ₹10,000 this quarter
e.g. ₹25,000 this quarter
e.g. ₹30,000 this quarter
e.g. ₹25,000 this quarter
These are example numbers. Edit any input on the left to see your own.
Your total Section 234C interest exposure
₹345
Advance tax applies
Net liability
₹90,000
Total shortfall
₹11,500
Your net advance tax liability is ₹90,000 — currently costing ₹345 in interest.
Instalment by instalment
What’s required cumulatively by each due date, versus your running total actually paid (added up automatically from what you entered per quarter). Any shortfall is charged 1% a month for a fixed 3 months (1 month for the final instalment) — shown alongside each row below.
InstalmentRequiredActually paidStatus
1st instalment — On or before 15 June₹13,500₹10,000
₹3,500 short
→ ₹105 interest, charged for 3 months on this shortfall
2nd instalment — On or before 15 September₹40,500₹35,000
₹5,500 short
→ ₹165 interest, charged for 3 months on this shortfall
3rd instalment — On or before 15 December₹67,500₹65,000
₹2,500 short
→ ₹75 interest, charged for 3 months on this shortfall
4th instalment — On or before 15 March₹90,000₹90,000
On track
100% of required paid
Why is this interest a fixed amount? Your ₹5,500 shortfall at the 2nd instalment costs exactly ₹165 — a flat 3-month charge (1% × 3 × shortfall) locked in the moment that due date passes. Paying it back the very next day doesn't reduce it, and waiting until just before the next instalment doesn't increase it either — it's a one-time snapshot, not a running daily meter.
Compare scenarios
See how paying exactly on schedule, or not paying at all, changes your interest exposure.
Your plan
Advance tax applies
₹345
Interest exposure
Baseline
Paid on schedule
Zero shortfall
₹0
Interest exposure
-₹345 less
Nothing paid yet
Worst case
₹4,545
Interest exposure
+₹4,200 more
Worked example, using your numbers
A step-by-step walkthrough of your advance tax position.
Step 1 · Net liability
After subtracting TDS/TCS already deducted, your net advance tax liability is
₹90,000
Step 2 · Total shortfall
Across every instalment, the gap between required and actually paid is
₹11,500
Step 3 · Total interest
At 1% a month on each instalment’s shortfall, that adds up to
₹345
✓
Catching up on your shortfall now stops it from costing more — your current exposure is ₹345 in Section 234C interest.
Personalised insights
What your numbers reveal, and what changing them would do.
Advance tax applies — your net liability is ₹90,000
That's above the ₹10,000 threshold, after subtracting ₹60,000 of TDS/TCS from your ₹1.50 L estimated liability.
Your current shortfalls cost ₹345 in interest
Paying on schedule instead would bring that down to ₹0.
2nd instalment is your biggest shortfall
You were short by ₹5,500 at this instalment, costing ₹165 in interest.
Paying nothing until 15 March would cost ₹4,545
That's the worst-case interest exposure if none of the earlier instalments were paid at all, for comparison against your actual plan.
How this is calculated
Every step of the math behind your result, shown in the open.
Net advance tax liability
T = your estimated total tax for the year, D = TDS/TCS already deducted, N = net advance tax liability
Your estimated total tax (T) minus tax already deducted or collected at source (D) gives the net liability (N) you need to cover yourself, through the year's four instalments.
Example: ₹1.50 L − ₹60,000 → ₹90,000 net liability
Required cumulative payment
N = net advance tax liability, p_i = 15% by 15 June; 45% by 15 Sept; 75% by 15 Dec; 100% by 15 March, R_i = required cumulative payment by that date
Each instalment has its own cumulative percentage of the full-year liability due by that date — not a flat quarter each time, so an early shortfall has to be made up, not just matched, at the next date.
Example: ₹90,000 × 15% → ₹13,500 required by On or before 15 June
Shortfall & interest — Section 234C
A_i = what you've actually paid cumulatively by that date, m_i = 3 months for the first three instalments; 1 for the last, I_i = interest for that instalment
If what you've actually paid (A) falls short of what's required (R) at any instalment, interest accrues on the shortfall at 1% a month — 3 months for each of the first three instalments, 1 month for the last.
Example: ₹13,500 required − ₹10,000 paid → ₹3,500 shortfall × 1% × 3 months → ₹105 interest
Total interest exposure
I_i = interest for each instalment, Total = your total Section 234C interest for the year
Adding up every instalment's interest gives your total exposure for the year — paying any outstanding shortfall as soon as possible stops it from growing further.
Example: ₹105 + ₹165 + ₹75 + ₹0 → ₹345 total interest
Assumptions
- Only Section 234C (instalment shortfall interest) is modeled — Section 234B (interest on the total balance after year-end) depends on your actual payment/filing date, which this calculator doesn't collect.
- The presumptive-taxpayer toggle switches to a single 15 March instalment per Section 44AD/44ADA — it doesn't otherwise change how tax itself is computed.
- Senior citizens (60+) without business or professional income are exempt from advance tax entirely, regardless of these numbers.
- Figures are indicative only — not tax advice. Consult a chartered accountant for your actual obligations.
Did you know?
A few facts behind India's advance tax rules.
₹10,000
The threshold below which advance tax doesn't apply
If your net tax liability for the year — after TDS/TCS — comes to ₹10,000 or less, you don't need to pay advance tax at all.
1%
Interest accrues monthly, not just once
Section 234C charges 1% interest per month on any shortfall — so a shortfall that sits uncorrected for the full 3-month window costs 3% of the gap, not a flat one-time fee.
Cumulative
Instalments stack, they don't reset
The schedule asks for 15%, then 45%, then 75%, then 100% of the year's total — an early shortfall has to be caught up on top of the next instalment's own requirement.
44AD
Presumptive taxpayers get a single deadline
Instead of four instalments through the year, Section 44AD/44ADA presumptive taxpayers pay their entire advance tax at once, on or before 15 March.
60+
Senior citizens without business income are exempt
If you're 60 or older and have no business or professional income, advance tax simply doesn't apply to you, no matter your total liability.
Fixed
Interest is a snapshot, not a running meter
Once a due date passes, that instalment's interest is locked in at exactly 3 months' (or 1 month's) worth — paying the shortfall back sooner doesn't reduce it, and later doesn't increase it, up until the next checkpoint.
Frequently asked questions
Straight answers to the questions we hear most about advance tax.
Do I enter what I paid each quarter, or a running total?
Just that quarter's payment — the calculator adds them up into the running totals the law actually checks against (15%, 45%, 75%, 100% of your net liability). You never need to work out or re-enter a cumulative figure yourself.
Who actually needs to pay advance tax?
Anyone whose net tax liability for the year (after TDS/TCS) exceeds ₹10,000 — this includes salaried employees with significant capital gains, rental income, freelance income, or interest income on top of their salary, not just business owners.
Are senior citizens exempt from advance tax?
Yes — resident senior citizens (60 or older) without any business or professional income are exempt from paying advance tax, regardless of their total liability.
What's different for presumptive taxpayers under Section 44AD/44ADA?
Instead of the four-part schedule, presumptive taxpayers pay their entire advance tax in a single instalment on or before 15 March — toggle “Presumptive taxpayer” above to switch to that schedule.
What happens if I miss an instalment?
Section 234C charges interest at 1% a month on the shortfall — 3 months' worth for a shortfall in any of the first three instalments, 1 month's worth for the fourth. Catching up at the next instalment stops further interest on that shortfall, but doesn't erase what already accrued.
If I pay off a shortfall quickly, do I still owe the full interest?
Yes. Section 234C interest is a fixed, one-time charge based on the shortfall at that due date — 3 months' worth for the first three instalments, 1 month's worth for the fourth — not a running daily or monthly meter. Paying it back the very next day doesn't reduce it, and waiting until just before the next instalment doesn't increase it either.
Does this include Section 234B interest for underpayment after year-end?
No — 234B interest depends on when you eventually pay the remaining balance or file your return, a date this calculator doesn't collect. It only models Section 234C's four fixed instalment checkpoints.
Is this tax advice?
No. This tool provides indicative estimates based on your inputs and the schedule in force at the time. Consult a chartered accountant for your actual instalment obligations.
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Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
The advance tax instalment schedule, explained
Why the 15/45/75/100 split is cumulative, not quarterly.
5 min read
Fundamentals
Section 234B and 234C interest, side by side
Two different penalties for two different kinds of shortfall.
6 min read
Strategy
Do salaried employees need to pay advance tax?
When TDS from your salary isn't the whole story.
5 min read