Advance Tax for Professionals and Business Owners: Calculation, Due Dates and Interest Basics

Advance tax is income tax paid during the financial year instead of waiting until return filing. It matters for professionals, proprietors, partners, landlords, investors and business owners whose tax is not fully covered by TDS.

Use the Advance Tax Calculator for an indicative estimate. For return and tax planning support, see Income Tax Services.

Who is liable?

Every person whose estimated tax liability for the year is Rs. 10,000 or more is generally liable to pay advance tax. A resident senior citizen not having income from business or profession is generally not liable.

For professionals and business owners, the estimate should consider business profit, professional receipts, salary/partner remuneration where applicable, interest, rent, capital gains and other income.

Regular instalment schedule

Any tax paid up to 31 March is generally treated as advance tax.

Presumptive taxpayer schedule

Eligible taxpayers under presumptive taxation provisions such as Section 44AD/44ADA generally pay 100% advance tax by 15 March. Eligibility and computation should be checked before relying on this simplified schedule.

How to calculate

1. Estimate total income for the year.
2. Compute tax under the applicable regime.
3. Add surcharge and cess where applicable.
4. Reduce expected TDS, TCS and other tax credits.
5. Compare net tax with the Rs. 10,000 threshold.
6. Apply the instalment percentage.
7. Reduce advance tax already paid.

Example

Estimated tax before credits is Rs. 1,00,000. Expected TDS is nil. Regular taxpayer schedule:

• 15 June: Rs. 15,000 cumulative;
• 15 September: Rs. 45,000 cumulative;
• 15 December: Rs. 75,000 cumulative;
• 15 March: Rs. 1,00,000 cumulative.

Capital gains or unexpected income

If income arises unexpectedly, such as capital gains after an instalment date, the law contains practical relief concepts when subsequent instalments are paid appropriately. Exact interest exposure should be reviewed with dates and amounts.

Interest basics

Sections 234B and 234C deal with interest for default or deferment in advance tax. Exact interest depends on estimated tax, tax credits, payment dates and income timing.

Related tools and guides:

• Income Tax Calculator
• TDS Compliance Checklist
• Old vs New Tax Regime Guide

Official references

• Income Tax Department e-Filing help
• Income Tax Department ITR FAQs

This article is general information reviewed in July 2026. Always check current law, CBDT updates and your facts before paying.