Advance Tax Calculator
Instalments and Section 234C Interest

Anyone whose estimated tax liability for the year, after reducing TDS and TCS, is ₹10,000 or more (Section 208). That covers most businesses, professionals, landlords with rental income, and salaried people with meaningful interest, dividend or capital gains income on which little or no tax was deducted. A resident senior citizen with no income from business or profession is exempt under Section 207.

Four cumulative instalments under Section 211: at least 15% of the year's tax by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March. Taxpayers under the presumptive schemes in Sections 44AD and 44ADA pay the whole amount in one instalment by 15 March. Any payment made by 31 March still counts as advance tax for that year.

Simple interest at 1% per month on the shortfall in each instalment: three months for each of the June, September and December instalments and one month for March. There is a cushion for the first two: no interest if at least 12% was paid by 15 June and 36% by 15 September, even though the targets are 15% and 45%. Presumptive taxpayers pay one month's interest on any shortfall at 15 March. The shortfall is rounded down to a multiple of ₹100 before interest is applied.

Section 234B applies when total advance tax paid during the year is less than 90% of the assessed tax. Interest is 1% per month or part of a month on the unpaid amount from 1 April of the assessment year until the tax is paid. It runs on top of 234C, which only covers the shortfall within the year. The calculator shows 234C; 234B depends on when the balance is finally paid.

Yes, but with relief. If a capital gain, dividend, or winnings from lottery or games arises after an instalment date, no 234C interest is charged for the earlier instalments as long as the tax on that income is paid in the instalments that fall after the income arose. The same applies to income from a business or profession that started during the year.

Yes. Advance tax is computed on the tax liability after reducing TDS and TCS that will be deducted or collected during the year, plus any relief under Sections 89, 90, 90A or 91 and any MAT or AMT credit. If the employer is deducting the right TDS on salary, a salaried person typically has no advance tax to pay unless they have other income.

Nothing dramatic on its own. You pay 1% a month for three months on 15% of the year's tax, so on a ₹4,00,000 liability the cost of skipping June is ₹1,800. What hurts is missing several instalments, because the shortfalls compound across the year, and then paying after 31 March, which brings Section 234B into play.

The four dates are the same for every client, which makes them the classic case for a recurring task. QwikCA creates an advance tax task per client at each instalment, lets you note the amount estimated and paid, and sends the client a reminder before the 15th. It tracks the deadline and the record; the estimate itself is still your professional call.