What Is Advance Tax?

Are you curious to know what is advance tax? You have come to the right place as I am going to tell you everything about advance tax in a very simple explanation. Without further discussion let’s begin to know what is advance tax?

In the complex landscape of income taxation, Advance Tax emerges as a significant concept, shaping the financial responsibilities of individuals and businesses. This comprehensive guide aims to demystify Advance Tax, exploring its definition, who is liable to pay, its implications in India, and the crucial aspects associated with its calculation and payment.

What Is Advance Tax?

Advance Tax is a mechanism through which taxpayers proactively pay a portion of their estimated annual tax liability in advance, at regular intervals throughout the financial year. This method ensures a steady inflow of revenue for the government and helps taxpayers manage their tax responsibilities systematically.

Who Is Liable To Pay Advance Tax?

Various entities and individuals fall under the purview of Advance Tax liability. Those who meet the following criteria are typically liable to pay Advance Tax:

  • Individuals with Business Income: Individuals earning income through business or profession.
  • Salaried Individuals with Taxable Income: Salaried individuals with taxable income exceeding the threshold specified by tax authorities.
  • Corporate Entities: Companies and corporations with assessable income are also subject to Advance Tax payments.

What Is Advance Tax In India?

In India, the concept of Advance Tax is governed by the Income Tax Act. It mandates taxpayers to pay taxes in installments rather than a lump sum at the end of the financial year. This ensures a steady revenue stream for the government and prevents the accumulation of a significant tax burden for the taxpayer.

Advance Tax Slab

The Advance Tax liability is calculated based on the estimated income for the financial year. The slabs for Advance Tax payments are predetermined, with installments due at specific intervals. The slabs are designed to facilitate a proportional distribution of tax payments across the year.

Advance Tax Payment Online

Advancements in technology have streamlined the process of Advance Tax payments. Taxpayers can conveniently make their Advance Tax payments online through designated portals and platforms. This enhances efficiency, reduces paperwork, and provides a seamless experience for taxpayers.

Advance Tax Calculator

To facilitate accurate Advance Tax payments, various online tools and calculators are available. These calculators take into account the taxpayer’s estimated annual income, applicable deductions, and the predetermined slabs to provide a precise calculation of the Advance Tax due.

Advance Tax Due Date

Compliance with deadlines is crucial in the realm of Advance Tax. Taxpayers must adhere to the specified due dates for installment payments to avoid penalties and interest charges. The due dates are typically spread across four installments within a financial year.

Advance Tax Slab For Individual

The Advance Tax slabs for individuals are structured based on their estimated annual income. The slabs ensure a systematic and proportional distribution of tax payments, preventing financial strain at the end of the financial year. Individuals can consult tax professionals or use online tools to determine their specific slabs.


In conclusion, understanding Advance Tax is paramount for individuals and entities subject to income taxation. Adhering to the Advance Tax payment schedule not only fulfills legal obligations but also enables effective financial planning. As the tax landscape evolves, staying informed about Advance Tax regulations and utilizing online resources can empower taxpayers to navigate their financial responsibilities seamlessly.


What Is Advance Tax In Simple Words?

Advance tax is the income tax paid in advance for the income earned in a particular financial year. Usually, the tax is to be paid when the income is earned.

How Do You Calculate The Advance Tax?

How to calculate advance tax? Estimate your total income from all sources earned from 1st April- 31st March of the financial year for which you are doing the advance tax calculations. Subtract all eligible deductions and exemptions. Compute tax on such Income as per the tax regime opted by you.

Is Advance Tax And Tds Same?

Salaried individuals falling under TDS net are exempted from paying the advance tax. However, any earnings from sources such as interest, capital gains, rent and other non-salary income will attract advance tax. If TDS deducted is more than the tax payable for the year, then one does not have to pay the advance tax.

Is Advance Tax Deducted From Salary?

Advance Tax Payment Rules: Every individual, including salaried employees, is required to pay advance tax if his/her tax liability for the year is more than Rs 10,000. For salaried employees, employers generally deduct the advance tax from their monthly salary and submit it to the tax department.

I Have Covered All The Following Queries And Topics In The Above Article

What Is Advance Tax In Income Tax

Who Is Liable To Pay Advance Tax

What Is Advance Tax In India

Advance Tax Slab

Advance Tax Payment Online

Advance Tax Calculator

Advance Tax Due Date

Advance Tax Slab For Individual

What Is Advance Tax