Advance Tax

byPaytm Editorial TeamNovember 6, 2025

Meaning

Advance Tax is a method of paying income tax in installments throughout the financial year.

Definition

It requires taxpayers to deposit a part of their total tax liability periodically, instead of a single payment at year-end, to avoid penalties.

Applicability and Calculation

Applicable to individuals and entities whose estimated tax liability exceeds ₹10,000. It’s calculated based on your projected income for the current financial year.

Payment Due Dates

Installments are due by June 15 (15%), September 15 (45%), December 15 (75%), and March 15 (100%) of the financial year.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.