Advance Tax and its Payment


Advance Tax is nothing but, Income Tax paid in advance instead of paying the entire amount at the end of the year. Advance Tax is also known as pay as you earn tax. The payment should be made in instalments, as per the due dates provided by the Income Tax Department.

Who is required to pay Advance Tax?

  • For Salaried Individuals, Freelancers and Businesses

Anyone who has a tax liability of Rs.10,000 or more in a given Financial Year, then in that case the taxpayer is required to pay this Tax. Advance Tax is applicable to Salaried Individuals, Freelances and Businesses. Senior Citizens, who are 60 years or above and in age and do not run any business then, they are exempt from paying Advance Tax.

  • Presumptive Businesses

Taxpayers who have opted for Presumptive Business Scheme, where a taxpayer’s business income is assumed to be 8% of the turnover if the turnover is less than Rs. 2Cr are exempt from paying this Tax for the Financial Year 2017-18.

Download Click Here and use our IOS App to file your Income Tax Return

Due dates for the payment of Advance Tax for the Financial Year 2017-18.

Due DatePayment of Tax
On or before 15th June15% of advance tax
On or before 15th September45% of advance tax
On or before 15th December75% of advance tax
On or before 15th March100% of advance tax

Download Click Here and use our Android App to file Income Tax Return

The Due Date to pay this tax for the Taxpayers who have opted for Presumptive Taxation Scheme.

Due Date


 Tax Payable
On or before 15th March100% of advance tax

Filing Income Tax Return

How to Calculate Advance Tax?

It can be calculated by taking into the consideration the tax rates applicable in relevant Financial Year. Income earned during the previous financial year can be taken as the taxable income for the calculation of advance tax liability. The taxpayers who have opted for Presumptive Taxation Scheme under Sections 44AD and 44ADA are required to pay the 100% of Advance Tax by 15th March, as it is the only due date for such taxpayers.

All India ITR Login | Start Filing Income Tax Return

Previous articleHow to Check ITR Status
Next articleAll About Self-Assessment Tax
All India ITR
All India ITR, one of India’s leading tax prep websites offering personal tax solutions focussing on income tax return filing through tech platforms, be it the web, Android or iOS, is dedicated to making tax returns as easy and convenient and yet as complete as possible. With value added services to help maximise tax savings and minimise tax outgo and tax investment advice the comparative advantage of specialization allows us to uniquely serve our clients. All India ITR is certified to conduct E-return intermediary services by the Income Tax Department of India.


  1. Thanks for posting this info. I just want to let you know that I just check out your site and I find it very interesting and informative. I can’t wait to read lots of your posts. I also enjoy reading the comments, but notice that a lot of people should stay on topic to try and add value to the original blog post. I would likewise urge everybody to bookmark this page to your most loved support of assistance spread the news.


Please enter your comment!
Please enter your name here