Advance Tax: Definition, Meaning & Guide for Indian Businesses

Income tax paid in installments during the year if your total tax liability for the year is expected to exceed 10,000 rupees. Quarterly: 15 Jun, 15 Sep, 15 Dec, 15 Mar.

What is Advance Tax?

Advance Tax is the income tax paid during the financial year rather than at ITR filing time in July. Applies if your estimated tax liability for the year (after TDS) exceeds 10,000 rupees. Payment schedule: 15 percent by 15 June, 45 percent (cumulative) by 15 September, 75 percent by 15 December, 100 percent by 15 March. Senior citizens (60+) with no business income are exempt. Underpayment attracts interest under Section 234B and 234C.