Download Advance Tax Calculator for AY 2025-26 in Excel:

Download Advance Tax Calculator for AY 2025-26 in Excel According to Section 208 of the Income Tax Act, 1961, any individual, including salaried taxpayers, whose estimated tax liability is likely to exceed Rs.10,000 [after considering tax deducted and collected at source (TDS and TCS)] in a financial year is required to pay advance tax that year. This does not apply to senior citizens who do not earn money from a business or profession.

Details of Advance Tax Payment

Income Tax Rules require you to make the payment in four payments - June 15, September 15, December 15, and March 15 - rather than all at once at the conclusion of the financial year. Salaried persons' employers deduct tax before depositing their salaries at the end of the month. Employers, on the other hand, do not consider other sources of income, such as interest on deposits, capital gains on the sale of stocks and mutual fund units, and so on. When estimating your advance tax liability, you must also consider these incomes.

Installments for the financial year	Due date	Advance tax payable
First installment	15th June	15% of the total tax liability
Second installment	15th September	45% of the tax liability as reduced by the amount, if any, paid in the earlier installment
Third installment	15th December	75% of the tax liability as reduced by the amount, if any, paid in the earlier installment
Fourth installment	15th March	100% of the tax liability as reduced by the amount, if any, paid in the earlier installment

How to Pay Advance Tax?

• Log into the official website of Income Tax to pay your taxes. If you have not already done so, you must first register yourself by entering your PAN.
• Next, select 'e-pay tax' from the 'Quick Links' menu on the left side of the website.
• Follow the steps to validate your PAN, input the OTP, and then pick the appropriate assessment year (2025-26 if you are paying advance tax for the financial year 2024-25) and 'Advance Tax (100)' as the 'kind of payment'.
• To finish the procedure, click 'Continue', enter your information, and pay.

Consequences of not paying Advance Tax

Paying the advance tax is not optional. If you fail to follow the regulations, you will have to pay penalties. You will be obliged to pay simple interest at the rate of 1% per month on the amount of less-than-necessary payment/non-payment of advance tax by the due date for the period until the payment is received. The penal interest on the deficit amount is only applicable if the total advance tax paid is less than 12% and 36% of the advance tax due on June 15 and September 15, respectively. Similarly, a penalty will apply if the advance tax you have paid is less than 75% and 100% of the due amount by December 15 and March 15, respectively. If you miss the March 15 deadline, you can still pay advance tax until March 31, but you will be charged one month's interest under Section 234C of the Income Tax Act. However, if you wait until July 31 (the deadline for filing ITRs for the preceding financial year) to complete this duty, the IT department will consider it a default in advance tax payment. In such circumstances, you must pay an additional four months of penal interest (1% per month) under Section 234B. To prevent paying significant penalties later, keep track of due dates and advance tax projections, and pay your bills on time. Here is the Advance Tax Calculator for AY 2025-26 in Excel