Advance Tax Due Dates and Calculation for FY 2024-25

Advance Tax Due Dates and Calculation for FY 2024-25

Advance tax is the income tax paid in installments during the financial year in which the income is earned, rather than at the end of the year. If your total tax liability after TDS exceeds Rs 10,000 in a financial year, you are required to pay advance tax.

Who Needs to Pay Advance Tax?

Advance tax is applicable to all taxpayers – salaried individuals, freelancers, professionals, and businesses – whose estimated tax liability for the year exceeds Rs 10,000 after deducting TDS. However, resident senior citizens (60 years or above) who do not have income from business or profession are exempt from advance tax.

Advance Tax Due Dates for FY 2024-25

For taxpayers opting for the presumptive taxation scheme under Sections 44AD or 44ADA, the entire advance tax must be paid in a single installment by 15th March.

How to Calculate Advance Tax

Follow these steps to calculate your advance tax:

Step 1: Estimate Total Income

Project your total income for the year from all sources – salary, business, capital gains, rental income, interest, and other income.

Step 2: Calculate Tax on Total Income

Apply the applicable tax slab rates (old or new regime) to compute the gross tax. Add surcharge if income exceeds Rs 50 lakh and health and education cess of 4%.

Step 3: Deduct TDS and TCS

Subtract the TDS already deducted by your employer, bank, or other parties, and any TCS collected. Also deduct any MAT/AMT credit.

Step 4: Check if Advance Tax is Applicable

If the remaining tax liability exceeds Rs 10,000, advance tax must be paid.

Calculation Example

A freelance consultant estimates the following for FY 2024-25:

Since net tax exceeds Rs 10,000, advance tax is required. The installments would be:

• 15th June: Rs 10,650 (15%)
• 15th September: Rs 31,950 cumulative (45%)
• 15th December: Rs 53,250 cumulative (75%)
• 15th March: Rs 71,000 cumulative (100%)

How to Pay Advance Tax Online

1. Log in to incometax.gov.in and go to e-Pay Tax
2. Select Challan No. / ITNS 280
3. Choose Income Tax (Other than Companies) and Advance Tax (100)
4. Enter your PAN, assessment year, address, and payment amount
5. Select your payment method – net banking, debit card, or UPI
6. Complete the payment and save the challan receipt

Interest for Non-Payment or Short Payment

Failure to pay advance tax or paying less than the required amount attracts interest:

• Section 234B – Interest at 1% per month if advance tax paid is less than 90% of the assessed tax. Charged from April 1st of the assessment year until the date of actual payment.
• Section 234C – Interest at 1% per month for deferment of individual installments. Charged for 3 months for the first three installments and 1 month for the last installment.

Track and Pay Advance Tax with FileWithUs.ai

FileWithUs.ai helps you estimate your advance tax liability throughout the year and sends reminders before each due date. Our platform calculates the exact installment amounts and generates pre-filled challans so you never miss a payment or incur unnecessary interest.