Think of advance tax as a pay-as-you-go model for your taxes. Instead of coughing up a lump sum at the end of the financial year, you pay your tax in chunks throughout the year. It’s like an EMI for your tax bill—keeps things smooth and prevents last-minute shocks.

Who Needs to Pay?

If your total tax liability crosses ₹10,000 in a financial year, you’re on the hook for advance tax. Here’s who falls under this rule:

📌 Salaried individuals, freelancers, and business owners – Whether you earn through a salary, rent, freelancing, stock market gains, or even interest on FDs, if your tax liability hits ₹10,000, you need to pay up.

📌 Senior citizens – If you’re 60 or older and don’t have business income, you’re off the hook.

📌 Presumptive taxpayers (Section 44AD & 44ADA) – If you’re a small business owner or an independent professional like a doctor, lawyer, or architect under the presumptive taxation scheme, you pay 100% of your tax in one go by 15th March (or by 31st March if you like cutting it close).

Why Should You Care?

📌 Avoid Penalties – Miss your installments, and you might attract interest under Section 234C. That’s extra money out of your pocket.

📌 Better Cash Flow – Paying in installments means you don’t get a massive tax bill in March. It’s like spreading out your expenses instead of taking a big hit at once.

📌 Keeps the Government’s Wheels Turning – The government needs cash flow too! Your timely payments keep the economy running.

Advance Tax Due Dates for FY 2024-25

15th June- 15% of total tax.

15 September- 45% of total tax (minus tax already paid)

15th December- 75% of total tax (minus tax already paid)

15th March- 100% of total tax (minus tax already paid)

For presumptive taxpayers, a single 100% payment is required by 15th March.

How Do You Pay?

Easy. Log in to the income tax e-filing portal, select ‘e-pay tax,’ punch in your details, and pay via net banking, debit card, or UPI. No long queues, no paperwork—just a few clicks, and you’re done.

Advance tax isn’t just a compliance thing—it’s a smart way to manage your tax payments without feeling the heat at the end of the year. Stay ahead of the deadlines, plan your finances, and avoid unnecessary penalties. Because when it comes to taxes, it’s always better to be prepared than to panic!