Who owes advance tax
Anyone whose tax for the year, after TDS, is ₹10,000 or more. For salaried people that usually means income besides salary: interest, rent, capital gains or freelance work. A resident aged 60 or over with no business income doesn't have to pay advance tax.
The instalments
| Due by | Paid so far, at least |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
Two kinds of interest
- For a late instalment (the rule known as 234C): 1% a month on the shortfall, for 3 months for each of the first three dates and 1 month for March.
- For paying less than 90% by 31 March (known as 234B): 1% a month on the unpaid tax, from 1 April until you pay.
Worked example
Your tax for the year, after TDS, is ₹40,000, from FD interest and rent. You paid nothing in June, September or December.
| Instalment | Should have paid | Interest |
|---|---|---|
| 15 June (15%) | ₹6,000 | 1% × 3 months = ₹180 |
| 15 September (45%) | ₹18,000 | 1% × 3 months = ₹540 |
| 15 December (75%) | ₹30,000 | 1% × 3 months = ₹900 |
Pay the full ₹40,000 by 15 March and the interest stops at ₹1,620. Pay nothing until you file in July, and the late-instalment interest grows to ₹2,020, plus 1% a month on ₹40,000 from April: ₹1,600 by 31 July, about ₹3,620 in all.
No interest on capital gains you couldn't predict
If you sell shares or property mid-year, there's no interest for the earlier instalments as long as you pay the tax on that gain in the instalments left after the sale, or by 31 March.
Even if you're late, pay now
Interest is 1% a month, so every month you wait costs more. Paying before 15 December still helps.
Common questions
What is the interest for missing the 15 December instalment?
1% a month on the shortfall against 75% of your tax, for three months.
Is there interest on capital gains for missed instalments?
Not for the earlier instalments, if you pay the tax on the gain in the instalments left after the sale.
Do senior citizens pay advance tax?
A resident aged 60 or over with no business income doesn't have to.
Who needs to pay advance tax?
Anyone whose tax for the year after TDS is ₹10,000 or more.
Two ways to sort this
Do it yourself
- Add up your income besides salary for the year.
- Work out the tax on it after TDS.
- If it's ₹10,000 or more, pay at least 75% of it by 15 December.
- Pay the rest by 15 March.
Let an expert do it
An expert can work out your advance tax and interest.
The first chat is freeWork out your instalments and any interest.
Open the advance tax calculatorSources
- Due dates for advance tax (FAQs on 234A to 234D), Income Tax Department
- Interest payable by the taxpayer under the Income-tax Act, Income Tax Department
- Tax rules for salaried individuals, AY 2026-27 (Budget 2026 kept the same slabs for 2026-27), Income Tax Department
This guide explains the rules in general. For your own situation, .