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What is the method for calculating and payment of advance tax?

Nine O Six

  1. Estimate Income: Calculate your expected total income for the financial year.

  2. Determine Taxable Income: Subtract eligible deductions to find your taxable income.

  3. Calculate Tax Liability: Use income tax slab rates to calculate the tax you owe.

  4. Divide into Installments: Divide your estimated tax liability into four installments.

  5. Pay Advance Tax:

    Quarter​​
    ​Due Date​
    ​Percentage of Tax to be Paid​
    ​First Quarter​
    ​15th June​
    ​15% of total tax liability​
    ​Second Quarter​​
    ​15th September​​
    ​45% of total tax liability​
    ​Third Quarter​​
    ​15th​December​
    ​75% of total tax liability​
    ​Fourth Quarter​​
    ​15thMarch​
    ​100% of total tax liability​

    Note: Taxes paid on or before March 31st are also considered to have been paid in advance for that financial year.​

    For the taxpayers who have opted for presumptive taxation u/s. 44AD and 44ADA, the taxpayer is required to pay the full amount of advance tax on or before 15th March. 

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