With advanced tax, individuals pay their tax responsibility bit by bit during the year and don’t have to pay a hefty sum just once. The first big deadline for 2025-26 is 15 June 2025, when 15% of the advance tax liability is due.
Which Taxpayers Need to Pay Advance Taxes?
Reduce Tax for Your Income—Over Income than ₹10,000 by TDS. You must pay advance tax if you fall into any of these categories:-
Those whose total tax burden falls above ₹10,000 when counting other income (such as interest, rent, and capital gains) should also pay advance tax.
If the tax liability for business, profession, or freelancing without sufficient TDS exceeds the threshold, such individuals must pay advance tax as Self-Employed Professionals and Freelancers. This is also an essential aspect for top chartered accountant firms in Mumbai to consider when advising clients.
₹10,000 or more in tax due makes all businesses, including those in Sections 44AD/44ADA, liable. For presumptive taxpayers, the advance tax is usually paid by 15 March.
If the total tax due for senior citizens from their jobs or businesses is greater than ₹10,000 a year, they must pay advance tax.
If a company or LLP’s total tax is above the threshold, it must pay advance tax in accordance with the law. Company registration India private limited often includes advice on managing taxes and advance payments.
Foreigners and non-resident companies with Indian revenues report to the tax authorities when their tax dues are above ₹10,000. Capital gains and winnings from lotteries are included in this.
You use the Advance Tax Payment Schedule if you work as an independent contractor.
Advance Tax Payment Schedule
During the financial year 2025-26, advance tax should be paid as follows: 15% by 15 June, 35% by 15 September, 60% by 15 December, and 100% by 15 March. Taxpayers who use the presumptive taxation method must pay all the advance taxes by 15 March of each year.
How to Determine Your Advance Tax
The process for calculating advance tax consists of these points:
Put together the totals from your salary, income from work/profession, rents, gain from selling assets, interest, and anything else you earned.
Once you’ve figured out your taxable income, subtract the eligible deductions allowed under sections 80C, 80D, and related laws.
Use the present tax slabs to determine the tax amount on the person’s net income.
Deduct the TDS you have paid or will pay during the year.
If the tax result shows ₹10,000 or more, taxes must be advanced per the monthly schedule. For comprehensive tax planning, GST consultancy services play a crucial role in managing your obligations.
Ways to Pay Advance Tax
Advance tax can be filed quickly and effortlessly through the Income Tax Department’s website:
Go to the official income tax e-filing website: Visit the income tax e-filing website.
Click on ‘e-Pay Tax’ under ‘Quick Links.’
First, type in your PAN, confirm it, and then provide your mobile number.
Type the OTP code you received on your mobile into the required field.
From the payment listing, select ‘Income Tax’.
Assessment Year 2025-26 and Payment type: Choose ‘100’ for Advanced Tax.
Fill in how much tax was paid and make sure everything is correct.
You can pay by net banking, debit card, or UPI.
After checking the defaults, make the payment.
Be sure to keep the receipt after you have made your payment.
Conclusion
Following the rules for taxes ahead of their due date is essential to avoid penalties and make filing your taxes easy. However, figuring out income, deductions, and the amount of tax you owe can be complicated, so it is suggested that you work with an expert. Many top chartered accountant firms in Mumbai offer expert advice to streamline your tax filing process.
If you let Epsilon Accounts Anusthan Fintech LLP handle your taxes, professionals with the right experience will help you and your business comply with tax regulations and keep payments up-to-date throughout the year.
FAQs
Q. When is advance tax supposed to be paid?
If your estimated annual tax after TDS is above ₹10,000, you need to pay advance tax in installments.
Q. What if I don’t pay the advance tax by 15 June?
If a company does not meet the advance tax deadline, it will be subject to additional interest under Section 234C.
Q. Must senior citizens pay their advance taxes?
Senior citizens and those with no business income are not required to make advance payments, even if their tax bill is higher than ₹10,000.
