Any taxpayer whose total estimated income tax liability after adjusting TDS/TCS is ₹10,000 or more in a financial year must pay advance tax in quarterly installments.
Quarterly deadlines for non-presumptive taxpayers: 15% by 15 June, 45% by 15 Sept, 75% by 15 Dec, and 100% by 15 March.
Only taxpayers declaring income under the presumptive schemes (like Section 44ADA or 44AD) can pay 100% in one installment by 15 March. Everyone else must follow the quarterly schedule.
Interest is charged under Section 234B (for underpayment of total tax) and Section 234C (for deferment of installments). Even late payment of the correct amount by one day attracts penal interest.
Add your projected income from all sources, subtract eligible deductions, compute your tax, then subtract TDS already deducted by your clients. The balance is the advance tax to be paid in installments.
Pay online via the Income Tax Department challengan 280 on the e-filing portal, selecting the appropriate assessment year and minor head. Keep the challan receipt for your records.
Penalty scenarios can be tricky. If you are unsure about your liability, email rautprajwal36@gmail.com with your income breakup and we will point you in the right direction.