What is Advance Tax?

Advance tax is income tax paid in installments during the financial year. Applicable when tax liability exceeds Rs.10,000 in a year.

Who Must Pay Advance Tax?

  • Freelancers, consultants, self-employed
  • Business owners with taxable income
  • Salaried employees with capital gains or side income

Not required: Salaried employees whose full tax is deducted as TDS.

Advance Tax Due Dates 2025-26

  • June 15: 15% of estimated tax
  • September 15: 45% cumulative
  • December 15: 75% cumulative
  • March 15: 100% cumulative

Penalty for Non-Payment

Interest under Section 234B: 1% per month on unpaid tax. Section 234C: 1% per month per missed installment.

How to Pay via Challan 280

  1. Go to incometax.gov.in or tin-nsdl.com
  2. Select Challan 280 -- Advance Tax (Code 100)
  3. Enter PAN and tax amount
  4. Pay via net banking or debit card

MyCamate helps calculate and plan advance tax for businesses