--- title: "Advance Tax in India: Due Dates, Interest and Computation" description: "Advance tax India due dates — Section 208 threshold Rs. 10,000, four instalments by 15-Jun/Sep/Dec/Mar and Section 234B/C interest explained." canonical_url: "https://billbabu.com/blog/advance-tax-india-due-dates" markdown_url: "https://billbabu.com/blog/advance-tax-india-due-dates.md" type: "blog-post" language: "en-IN" published: "2026-05-16" last_updated: "2026-10-08" author: "BillBabu Team" category: "Accounting" tags: ["advance tax", "income tax", "section 234", "compliance"] site: "BillBabu (https://billbabu.com)" --- # Advance Tax in India: Due Dates, Interest and Computation By BillBabu Team · Published 16 May 2026 · Updated 8 October 2026 · Category: Accounting Advance tax India due dates — Section 208 threshold Rs. 10,000, four instalments by 15-Jun/Sep/Dec/Mar and Section 234B/C interest explained. ## Who Must Pay Advance Tax Section 208 of the Income Tax Act requires every assessee whose estimated tax liability for the year (after TDS / TCS) exceeds Rs. 10,000 to pay tax in instalments during the year itself — known as advance tax. Resident senior citizens (60+) with no business or professional income are exempt; everyone else, including proprietors, partnerships, LLPs and companies, must pay. Advance tax applies to all heads of income — business, salary (where TDS is short), capital gains, interest and rent. Salary income for most employees gets fully covered by TDS, but if you have additional rental or interest income that pushes you into a higher slab, you have to top up via advance tax. ## The Four Instalment Schedule For all assessees (other than 44AD presumptive) the schedule is — by 15 June, 15% of estimated tax; by 15 September, 45% cumulative; by 15 December, 75% cumulative; by 15 March, 100% cumulative. For assessees under Section 44AD or 44ADA, the entire tax is payable in a single instalment by 15 March. Payment is made online using Challan ITNS 280 — select "Advance Tax (100)" and the relevant Assessment Year. Always pay one day before the due date to allow for portal downtime; banks accept payments till midnight but the Income Tax portal occasionally throttles on the last day. ## Section 234B and 234C — The Interest Cost of Delay Section 234B charges 1% per month (or part thereof) on the shortfall if total advance tax paid is less than 90% of assessed tax — from 1 April of the assessment year until the date of payment of self-assessment tax. Section 234C charges 1% per month for three months on each instalment shortfall — 15%, 45%, 75% benchmarks — and 1% for one month on the 15 March shortfall. The two sections operate independently, so a poorly planned year can attract both. There is no waiver for first-time taxpayers; even genuine cash-flow problems do not excuse the interest. ## How to Estimate the Liability Project your full-year income by annualising the year-to-date figures, add expected receipts, deduct estimated business expenses, depreciation under Section 32, and eligible Chapter VI-A deductions (80C, 80D, 80G, 80TTA). Apply the slab rates of the regime you have chosen (new regime by default from AY 2024-25). Subtract expected TDS and TCS, and the balance is the advance tax payable. Re-estimate at each of the four due dates — if business picks up in December, the 15 March instalment can absorb the catch-up without Section 234C kicking in (Section 234C only checks the shortfall at each cut-off, not subsequent excess). ## Plan Your Advance Tax from Live P&L in BillBabu BillBabu projects your annual taxable income from year-to-date figures, applies your chosen tax regime and slab rates, deducts TDS already recorded against you (auto-imported from Form 26AS where available), and shows the recommended advance tax for each upcoming due date. The dashboard turns amber two weeks before each cut-off and provides a one-click challan link. Section 234B / 234C exposure is recalculated daily, so you can decide whether a small shortfall is worth the 1% per month cost or whether to pay now. **Built for Indian small businesses.** BillBabu is GST-compliant billing software that helps you create invoices, manage estimates, track payments and stay audit-ready — from your phone. [Learn more about BillBabu](https://billbabu.com/) or [download the app](https://play.google.com/store/apps/details?id=com.billbabu.app). ## Related guides - [Export Realization Delays & EDPMS Caution Listing: RBI Extension Rules, Write-Off Limits, and e-BRC](https://billbabu.com/blog/export-realization-edpms-caution-listing-write-off-rules): Protect your business from RBI EDPMS caution listing. Master the 9-month export realization deadline, AD bank extensions (Form ETX), 5% & 10% write-offs, e-BRC, and forex accounting. - [GST on Payment Gateway MDR & Daily UPI Settlements: Journal Entries, ITC, and Reconciliation Guide](https://billbabu.com/blog/gst-on-payment-gateway-mdr-accounting-entries): Master the accounting treatment for payment gateway MDR under SAC 9971, 18% GST ITC claiming in GSTR-2B, Section 194-O TDS, double-entry vouchers, and 3-way reconciliation. - [Fixed Assets Register: Format, Contents and Depreciation Schedule](https://billbabu.com/blog/fixed-assets-register-india-format): Fixed assets register India format — required contents, depreciation schedule and disposal accounting for compliant SMB record-keeping. --- This is the Markdown version of https://billbabu.com/blog/advance-tax-india-due-dates for AI assistants. Product summary and every page: https://billbabu.com/llms.txt