Advance Tax Calculator — Quarterly Schedule + 234B/234C FY 2025-26 & 2026-27
Pay advance tax in 4 quarterly installments if your tax liability after TDS exceeds ₹10,000. Schedule under Section 211: 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March. Missing any installment triggers Section 234C interest at 1% per month for 3 months (1 month for Q4). If total advance tax paid by 31 March is below 90%, Section 234B interest at 1% per month also applies. Resident senior citizens (60+) without business income are exempt. Presumptive taxpayers under 44AD/44ADA pay 100% in one installment by 15 March.
Advance Tax + Section 234B/234C Calculator
Enter your estimated income to compute the quarterly advance tax schedule. To check 234B/234C interest on missed installments, expand the interest wizard after computing.
Quarterly Installment Schedule
| Installment | Due Date | Cumulative % | Amount Due (Cumulative) | This Installment |
|---|
Compute Section 234B / 234C Interest (if installments missed) ▾
Enter the actual amount of advance tax paid by each due date. Interest is computed at 1% per month on shortfalls. Tolerance bands of 12% (Q1) and 36% (Q2) avoid 234C interest for those quarters per the Income Tax Act provisos.
How Advance Tax Works in India
Advance tax is income tax paid in installments during the financial year on a "pay-as-you-earn" basis. Instead of paying the full tax at year-end, the Income Tax Act mandates spreading payments across the year for liabilities exceeding ₹10,000. The framework is governed by Sections 207 to 219 of the Income Tax Act 1961, administered by the Income Tax Department, and applied per the standards of the Institute of Chartered Accountants of India. The structure was last refined by the Ministry of Finance through Budget 2016 and has been the subject of multiple PIB notifications on compliance and interest provisions.
The Three Components
- Total tax liability — your estimated income tax for the financial year, computed under either the old or new regime, including 4% cess and any applicable surcharge.
- Less: TDS already deducted — tax withheld by your employer (Section 192), bank (Section 194A), or any other deductor counts as advance tax already paid.
- Equals: Advance tax payable — this is what you must pay in quarterly installments under Section 211.
Who Must Pay Advance Tax?
Per Section 208, advance tax is required when your total tax liability after TDS exceeds ₹10,000 in a financial year. This threshold applies to all types of taxpayers:
- Salaried individuals with significant income outside salary (rent, capital gains, interest, freelance)
- Self-employed professionals and freelancers
- Business owners and partnership firms
- Companies (corporate advance tax follows the same schedule)
- Hindu Undivided Families (HUFs)
- Capital gains earners (advance tax on capital gains is due in the installment immediately following the sale, per the proviso to Section 234C)
Exempt: Resident senior citizens (60+) without business or professional income — they can pay the entire tax in one shot before 31 March.
Quarterly Installment Schedule (FY 2025-26)
| Installment | Due Date | Cumulative % | This Installment % | 234C Tolerance |
|---|---|---|---|---|
| Q1 | 15 June 2025 | 15% | 15% | ≥12% no interest |
| Q2 | 15 September 2025 | 45% | 30% | ≥36% no interest |
| Q3 | 15 December 2025 | 75% | 30% | Exact 75% required |
| Q4 | 15 March 2026 | 100% | 25% | Exact 100% required |
Tolerance Bands for Q1 and Q2
The Income Tax Act recognises that estimating annual income early in the year is difficult. Two relaxations apply:
- Q1 (15 June): Paying at least 12% avoids Section 234C interest, even though the prescribed amount is 15%.
- Q2 (15 September): Paying at least 36% cumulative avoids interest, even though the prescribed amount is 45%.
For Q3 and Q4, no tolerance applies — the cumulative percentages of 75% and 100% must be paid in full to avoid interest.
Special Schedule for Presumptive Taxpayers
Per the second proviso to Section 211(1), taxpayers opting for presumptive taxation under Section 44ADA (professionals) or Section 44AD (small businesses) can pay 100% of advance tax in a single installment by 15 March of the financial year. No Section 234C interest applies for the missed first three quarters in this case. This is a significant compliance simplification — particularly valuable for freelancers and consultants whose income is uneven.
Important: Any tax paid up to 31 March of the financial year is still treated as advance tax for that year. Paying after 15 March but before 31 March still counts toward the 100% target — though you may incur Section 234C interest for the Q4 shortfall on 15 March.
Section 234B and 234C Interest
Section 234B — Default in Payment of Advance Tax
Section 234B applies if total advance tax paid by 31 March is less than 90% of assessed tax. Interest is charged at 1% per month (simple) on the entire shortfall, calculated from 1 April of the assessment year until the date you pay the remaining tax (or until self-assessment is complete).
where Shortfall = Assessed Tax − Total Advance Tax Paid
applied only if Total Advance Tax Paid < 90% of Assessed Tax
Per Rule 119A, the shortfall is rounded down to the nearest ₹100, and any part of a month is treated as a full month.
Section 234C — Default in Installment
Section 234C levies interest for deferment of installments — i.e., when you pay less than the prescribed cumulative percentage by any installment due date. Interest is charged at 1% per month for:
- 3 months for shortfalls in Q1, Q2, and Q3
- 1 month for shortfall in Q4 (15 March)
Q1: Shortfall × 1% × 3 (only if cumulative paid < 12%)
Q2: Shortfall × 1% × 3 (only if cumulative paid < 36%)
Q3: Shortfall × 1% × 3 (only if cumulative paid < 75%)
Q4: Shortfall × 1% × 1 (only if cumulative paid < 100%)
Combined 234B + 234C
Both sections can apply simultaneously. 234C captures interest for missing individual quarterly deadlines during the year. 234B captures interest for the residual shortfall persisting beyond 31 March. They are not mutually exclusive — a taxpayer who misses every installment AND pays less than 90% by 31 March owes interest under both sections.
Capital gains exception: If capital gains arise unexpectedly mid-year, Section 234C provides relief — no interest applies if the tax on those gains is paid in the installment immediately following the gain (or by 15 March if gain is in Q4). This protects taxpayers from being penalised for income they could not have foreseen at earlier installment dates.
Need Help with Advance Tax Planning?
Patron's CAs map your AY 2026-27 income, compute 234B/234C-safe instalments, and file your challans on time. We support Pune, Mumbai, Delhi, Gurugram and pan-India clients.
Worked Examples
Example 1 — Freelancer with ₹15L Income (New Regime)
A consultant estimates ₹15,00,000 income for FY 2025-26 with ₹50,000 TDS already deducted by clients. Under the new regime, slab tax on ₹15L is ₹1,05,000 (no rebate as income exceeds ₹12L). With 4% cess: ₹1,09,200. Advance tax payable = ₹1,09,200 − ₹50,000 = ₹59,200.
| Quarter | Due Date | Cumulative | Amount (Cumulative) |
|---|---|---|---|
| Q1 | 15 Jun 2025 | 15% | ₹8,880 |
| Q2 | 15 Sep 2025 | 45% | ₹26,640 (incremental ₹17,760) |
| Q3 | 15 Dec 2025 | 75% | ₹44,400 (incremental ₹17,760) |
| Q4 | 15 Mar 2026 | 100% | ₹59,200 (incremental ₹14,800) |
Example 2 — Salaried with Side Capital Gains (Old Regime)
Salary income ₹12,00,000 with TDS ₹85,000 fully covering salary tax. Capital gain of ₹3,00,000 from equity sale on 10 December 2025. Additional tax @ 12.5% on ₹1,75,000 (after ₹1.25L exemption) = ₹21,875 + cess ₹875 = ₹22,750.
Per the Section 234C capital gains proviso, this ₹22,750 must be paid in the installment immediately following the gain — i.e., by 15 March 2026 — to avoid Section 234C interest. Paying it by 31 March would still incur 234C interest for the Q4 missed installment.
Example 3 — Section 234C Interest on Missed Q1
Tax liability ₹1,00,000 for FY 2025-26. Required Q1 (15 June) cumulative payment: ₹15,000 (or ₹12,000 with tolerance). Actual paid: ₹5,000 — below the 12% tolerance, so 234C applies. Per the Income Tax Act, when tolerance is breached, interest is computed on the shortfall vs the prescribed amount (15%), not vs the tolerance threshold (12%).
- Shortfall: ₹15,000 − ₹5,000 = ₹10,000 (rounded to ₹10,000 per Rule 119A)
- Interest: ₹10,000 × 1% × 3 months = ₹300
Example 4 — Section 234B on Total Shortfall
Assessed tax ₹2,00,000. Total advance tax paid by 31 March 2026: ₹1,50,000 (75% of assessed tax — below 90% safe harbour). Tax remaining: ₹50,000, paid on 31 July 2026 along with ITR filing.
- Shortfall: ₹50,000 (rounded to ₹50,000)
- Period: 1 April 2026 to 31 July 2026 = 4 months (any part of month counts as full)
- 234B Interest: ₹50,000 × 1% × 4 = ₹2,000
CA Tip: If you anticipate variable income (consulting, investments, capital gains), pay slightly more than required at each installment. Excess advance tax becomes a refund with interest under Section 244A — better than under-paying and incurring 1% per month penalty interest. Patron's Income Tax Return Filing service includes quarterly advance tax estimation for clients.