How to Pay Advance Tax Online in India — Complete Guide FY 2025-26

Advance tax is income tax paid in advance during the financial year rather than as a lump sum at filing time. Under Section 208, any individual or business with a tax liability exceeding ₹10,000 (after TDS deduction) must pay advance tax in installments throughout the year.

This applies to: freelancers and self-employed professionals, business owners, investors with capital gains, salaried employees with significant side income, and NRIs with Indian income. Salary earners whose full tax is deducted by their employer are generally exempt.

Q1: On or before June 15 — 15% of annual estimated tax. Q2: On or before September 15 — 45% cumulative. Q3: On or before December 15 — 75% cumulative. Q4: On or before March 15 — 100% cumulative.

For taxpayers under presumptive taxation (Section 44AD/44ADA), the entire advance tax is due by March 15 in one installment, not quarterly.

Estimate your annual income conservatively in April, compute tax under both regimes, deduct expected TDS, and calculate 15% for the June installment. Revise estimates in subsequent quarters as income becomes clearer.

Step 1: Go to incometax.gov.in → e-Pay Tax → New Payment. Step 2: Select Income Tax from the list. Step 3: Choose Challan 280. Step 4: Select 'Advance Tax' as the Type of Payment (Code 100). Step 5: Enter PAN, Assessment Year (current + 1), and amount.

Step 6: Choose payment mode — Net Banking, Debit Card, or NEFT/RTGS. Step 7: Confirm payment and download the BSR code + challan serial number. This serves as proof of payment.

Save the challan acknowledgment carefully — you'll need the BSR code, date, and challan serial number when filing ITR. Challan details are also visible in Form 26AS within 2–3 business days.

Section 234B: 1% simple interest per month on the unpaid amount (from April 1 to date of actual payment) if you haven't paid 90% of your annual tax liability by March 31.

Section 234C: 1% interest per month for underpayment of each quarterly installment. Applies separately to each quarter where cumulative payment fell short of the required percentage.

Combined, 234B + 234C can add 5–8% to your tax bill. For professionals earning ₹15–20L, this can mean ₹20,000–₹50,000 in avoidable interest. Using our Advance Tax Calculator ensures you pay the right amount on time.