What is Advance Tax?
Advance Tax is part payment of one’s tax liability before the end of the fiscal year, on 31st March. All items of income are liable for payment of advance tax.
Who are all liable to pay Advance Tax?
Individuals and Corporates are liable to pay Advance Tax if their income exceeds the non taxable limits.

When it has to be paid?
S.No Due date Amount payable by non corporate Assessee Amount payable by corporate Assessee
1 On or Before June 15th NIL Upto 15%
2 On or Before September 15th Upto 30% Upto 45%
3 On or Before December 15th Upto 60% Upto 75%
4 On or Before March 15th Upto 100% Upto 100%


Why it has to be paid?
1. As per the Income Tax Act, Advance Tax has to be paid taking into account the future income within the respective financial year.
2. Advance Tax helps us to pay taxes in installments spread with the Financial Year and thus huge payment of tax in the last moment can be avoided.


What is the procedure for paying Advance Tax?

Direct Mode of Payment:

Advance Tax can be paid by filling a Tax Payment Challan, ITNS 280. Challan, at designated branches of banks empanelled with the Income Tax Department.
Online Mode of Payment :
Assessee can pay Advance Tax Online through the NSDL website, or Click on this link : https://onlineservices.tin.egov-nsdl.../tdsnontds.jsp,
1. Then select 280 challan
2. Select Tax Applicable as (0021)
3. Select Assessment Year (eg. If FY 2011-12, then AY is 2012-13)
4. Then select type of payment as (100) Advance Tax, and fill rest details.
5. Online Payment is allowed only by Net Banking & not by Credit/ Debit cards.


What if I fail to pay Advance Tax?

If you fail to pay Advance Tax or pay less than stipulated rates, you will be required to pay Interest & Penalty under section 234A & 234B of the Income Tax Act, 1961.


How do I know if I have already paid Advance Tax?

Once you have paid the Advance Tax, it will reflect on your Form 26AS within 2-3 days of making the payment.


How do I compute my Advance Tax?
Computation of Advance Tax is very similar to computation of your Income Tax returns. All you have to do is accumulate all your Income Sources, Deductions, and Exemptions & calculate your tax liability.