How to Pay Advance Tax Online: Due Dates and Process

Paying advance tax online in India

Advance tax is income tax paid in installments during the financial year, instead of paying the entire amount at the end of the year. For self-employed individuals, freelancers, and business owners, paying advance tax is mandatory if your total tax liability exceeds Rs 10,000 in a financial year. Failing to pay advance tax on time results in interest penalties. This guide explains the complete process of paying advance tax online.

What Is Advance Tax?

Advance tax is essentially a “pay as you earn” system. Unlike salaried employees whose tax is deducted monthly by their employer (TDS), self-employed individuals must estimate their annual income and pay tax in quarterly installments to the government. It applies to all taxpayers — individuals, firms, companies — whose estimated tax liability for the year (after TDS) exceeds Rs 10,000.

Who Must Pay Advance Tax?

You must pay advance tax if:

You are a self-employed professional, freelancer, or business owner.
You have income from sources where TDS is not deducted (rental income, capital gains, interest income).
Your estimated tax liability after TDS exceeds Rs 10,000 for the financial year.

Note: Senior citizens (60 years or above) who do not have business or professional income are exempt from advance tax.

Advance Tax Due Dates for FY 2025-26

Advance tax must be paid in four quarterly installments:

15th June 2025 — At least 15% of the estimated annual tax
15th September 2025 — At least 45% of the estimated annual tax (cumulative)
15th December 2025 — At least 75% of the estimated annual tax (cumulative)
15th March 2026 — 100% of the estimated annual tax (cumulative)

If a due date falls on a Sunday or public holiday, the payment can be made on the next working day.

How to Calculate Advance Tax

Follow these steps to estimate your advance tax:

Estimate your total annual income — Include business income, rental income, capital gains, interest, and other sources.
Deduct eligible exemptions and deductions — Under sections 80C, 80D, etc. (if using Old Regime).
Calculate tax on taxable income — Using the applicable slab rates.
Add surcharge and cess — Health and Education Cess at 4%.
Subtract TDS already deducted — Check Form 26AS for TDS credits.
The balance is your advance tax liability — Pay this in quarterly installments.

Step-by-Step Guide to Pay Advance Tax Online

Step 1: Visit the e-Pay Tax Portal

Go to incometax.gov.in and click on “e-Pay Tax” under the Quick Links section. Alternatively, you can directly visit the e-filing portal and navigate to e-File > e-Pay Tax.

Step 2: Enter Your PAN

Enter your PAN number and mobile number. An OTP will be sent to your registered mobile number for verification. Enter the OTP to proceed.

Step 3: Select the Correct Challan

Click on “Income Tax” and then “Proceed”. Select the Assessment Year (for FY 2025-26, select AY 2026-27). Under “Type of Payment”, select “Advance Tax (100)”. Enter the amount you want to pay.

Step 4: Choose Payment Method

Select your preferred payment method:

Net Banking — Through your bank’s internet banking portal.
Debit Card — Visa or Mastercard debit cards.
Pay at Bank Counter — Generate a challan and pay at an authorized bank branch.
UPI — Pay through any UPI app (for amounts up to Rs 1 lakh through some banks).
NEFT/RTGS — Generate a mandate and pay through your bank.

Step 5: Complete Payment

After selecting the payment method, you will be redirected to the bank’s payment page. Complete the payment and you will receive a confirmation with a Challan Identification Number (CIN). Save and download this receipt for your records.

Step 6: Verify Payment

After payment, verify that it reflects in your Form 26AS. It typically takes 3-5 working days for the payment to appear. You can check under “Part C — Tax Paid” in your Form 26AS.

Interest on Late Payment of Advance Tax

Two types of interest are charged for non-payment or short payment:

Section 234B — If total advance tax paid is less than 90% of the assessed tax, interest at 1% per month is charged on the shortfall from April to the date of filing.
Section 234C — If you miss or underpay any quarterly installment, interest at 1% per month is charged for 3 months on the shortfall amount.

Tips for Managing Advance Tax

Set calendar reminders for all four due dates.
Estimate conservatively — it is better to overpay slightly and get a refund.
Review your income estimates before each installment and adjust accordingly.
Keep all challan receipts organized for reference during ITR filing.
If your income is unpredictable, pay a larger chunk in later installments when you have better clarity.

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