Advance Tax: Due Dates, Installments and §234B / §234C Interest
6 min read · Income Tax
Advance tax means paying your income tax as you earn, across the year, instead of in one lump at filing. Underpay and two interest sections — §234B and §234C — quietly add up. Here's how it works.
Who has to pay it
Anyone whose total tax liability after TDS exceeds ₹10,000 in a financial year must pay advance tax. Resident senior citizens with no business income are exempt.
The installment schedule
For non-presumptive taxpayers, advance tax is due cumulatively: 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March. Presumptive taxpayers under §44AD/§44ADA pay the full amount in a single installment by 15 March.
§234C — interest for deferring an installment
If you pay less than the required cumulative percentage by any due date, §234C charges 1% per month on the shortfall — for three months on the June, September and December installments, and one month on the March one. There's relief if you've paid at least 12% by June and 36% by September.
§234B — interest for paying under 90%
If your total advance tax paid is less than 90% of your assessed tax, §234B charges 1% per month on the shortfall, running from 1 April of the assessment year until you actually pay. §234B and §234C can both apply at once.
OnGravy estimates each installment from your live P&L and TDS credits and reminds you before every due date — so §234B/C interest never accrues.
Try OnGravy →General information, not tax advice. Confirm the figures for your situation with your CA.