Lesson 53 of 53 · Advance tax · 3 min read · Reviewed 29 Oct 2026
Anyone whose tax for the year, after TDS, is ₹10,000 or more, under section 404 of the Income-tax Act 2025 (208 of the 1961 Act). It is paid in four parts: 15% by 15 June, 45% by 15 September, 75% by 15 December and all by 15 March. Residents 60 or older with no business income are exempt.
If tax due after TDS will be ₹10,000 or more, pay it in advance through the year.
Cumulative instalments are 15% by 15 Jun, 45% by 15 Sep, 75% by 15 Dec and 100% by 15 Mar.
Missing an instalment costs 1% a month on the shortfall, for 3 months for each of the first three.
Key idea: Tax on a capital gain or dividend that arrives mid-year can be paid in the next instalment without interest.
Tax rules as of 29 Oct 2026, checked on incometaxindia.gov.in.
Try the short quiz on this page to check what stuck.
Interest of 1% a month runs from 1 April on the shortfall.
Residents 60 or older with no business or professional income are.
Yes, it counts as advance tax.
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