Advance Tax is the “pay-as-you-earn” concept under Income Tax Act, where tax is paid during the financial year instead of waiting for year-end filing.

Who Should Pay Advance Tax?

• Individuals with total tax liability > ?10,000 in a financial year

• Professionals, freelancers, business owners

• Salaried individuals with additional income (rent, capital gains, interest, etc.)

Advance Tax Due Dates (Non-Corporate Taxpayers):

• 15th June – 15% of total tax liability

• 15th September – 45%

• 15th December – 75%

• 15th March – 100%

Penalties for Non-Compliance:

• Interest under Section 234B & 234C

• Higher outflow at the time of return filing

How to Pay:

• Online via the income tax portal using Challan 280

Tip: Use a tax calculator or consult a tax advisor to estimate your liability correctly and avoid interest charges.