Advance Tax Calculator: Calculate Advance Tax Liability Easily

Key Takeaways 

• You are required to pay advance tax if your total tax liability in a financial year is ₹10,000 or more under Section 208 of the Income Tax Act, 1961. 
   
• Advance tax must be paid in four fixed installments that are 15 June (15%), 15 September (45%), 15 December (75%), and 15 March (100%). Interest under Sections 234B and 234C may be charged on the shortfall if you do not pay these instalments in the correct percentages.
   
• Interest under Section 234C is charged at 1% per month for the delay of instalments, and Section 234B also levies 1% per month for the short payment of the total advance tax. 
   

An Advance Tax Calculator India is an online tool that helps you estimate how much income tax you need to pay in installments during the financial year. You can also use an Indian income tax calculator to calculate your total tax liability.

You can use the advance tax calculator AY 2026 27 to check your total tax liability and subtract the TDS already deducted instead of waiting until the end of the year. It shows how much advance tax you must pay and the exact instalment dates. It helps you plan your tax payments and avoid interest or penalties. 

You can use an advance income tax calculator or an income tax advance tax calculator to get exact numbers.

Bonus Tip: Tax experts are recommending renaming advance tax to “estimated tax” under the new Income-Tax Act. This makes the system clearer for taxpayers from AY 2026-27 onwards.

How to Calculate Advance Tax?

Salary aate hi khushi hoti hai, but tax ka thought aate hi tension shuru? Don’t worry, let’s understand how much advance tax you need to pay and how to calculate it!

1. Enter your total estimated income for the financial year.
2. Add income from all sources, like salary, business, capital gains, and interest.
3. Select the applicable tax regime.
4. The calculator will compute your total tax liability.
5. Enter TDS already deducted.
6. It will show the remaining advance tax payable and instalment amounts.

You can pay the calculated amount online before the due dates to avoid interest.

Suppose my total tax liability is ₹80,000, and ₹20,000 has already been deducted as TDS. I entered these details into the advance tax calculator AY 2026 27. The Advance tax calculator India showed that my remaining tax payable is ₹60,000 and displayed the four instalment amounts as per official percentages. 

Read More - Tax Compliance in India

If I miss any instalment or pay less than required, interest under Sections 234B and 234C applies. I check the amount using an interest on advance tax calculator in such cases.

Advance Tax Calculator Examples 

Here are three examples by which you can understand how advance tax is calculated:

1. Salaried Professional Planning a Home Loan

I am a salaried software engineer applying for a home loan. My estimated total tax liability for the year is ₹1,50,000, and my employer has already deducted ₹50,000 as TDS.

Advance Tax Calculation
 

Installment Schedule (As per 15%, 45%, 75%, 100% Rule)
 

I calculated my exact advance tax, so my financial record remains clean before loan approval.

2. Freelancer/Consultant (Applying for a Personal Loan)

I am a freelance consultant taking a personal loan to buy a small car. My estimated tax liability for the year is ₹2,00,000. TDS on some contracts so far is ₹20,000. I want exact instalment amounts so I can show lenders I am tax compliant.
 

Here, I also checked liability using the indian income tax calculator to avoid miscalculation.

3. Small Company (Applying for an Equipment Loan)

I run a small manufacturing company applying for an equipment loan. My corporate estimated tax liability for the year is ₹5,00,000, and there is no TDS credit. I must meet corporate advance-tax installments precisely.
 

Also Read - Advance Ruling

This prevented interest under Sections 234B/234C and kept our loan application clean with the bank. Businesses often use an advance tax calculator for company to manage quarterly payments for corporate planning. 

You can avoid penalties and keep your finances well organised by planning your advance tax.

Benefits of Using the Advance Tax Calculator

Here are three real experiences that show how using an advance tax calculator made a difference:

1. I saved ₹4,200 in Interest

One year, my total estimated tax liability was ₹1,80,000. I paid only ₹20,000 by September instead of the required ₹81,000 cumulative amount.

I realised I would have paid around ₹4,200 as interest for the delayed payment. When I later calculated the shortfall using the interest on advance tax calculator under Sections 234B and 234C.

The next year, I used the advance tax calculator properly and paid ₹27,000 in June and ₹54,000 in September. I avoided extra interest completely. I saved ₹4,200 just by planning installments correctly.

2. My Monthly Budget Became Easier to Handle

As a freelancer, my annual tax estimate once came to ₹2,40,000. I divided it into instalments instead of worrying about paying everything at the end of the year:

• June: ₹36,000
• September: ₹72,000
• December: ₹72,000
• March: ₹60,000

I could set aside around ₹20,000 per month by spreading ₹2,40,000 across four dates. I maintained stable monthly savings and never faced a sudden financial burden.

3. I Improved My Loan Approval Chances

When I applied for a home loan of ₹35,00,000, the bank checked my tax compliance. That year, my total liability was ₹1,20,000, and I paid every instalment on time.

My financial record looked clean because my advance tax payments were regular and visible in Form 26AS

It helps you stay regular with your tax payments and avoids that last-minute stress when deadlines are approaching.

Conclusion 

Advance tax may seem complicated at first, but it becomes simple to manage with proper calculation and timely payments. You can avoid penalties, maintain compliance, and keep your overall tax planning efficient by understanding instalment dates and accounting for TDS correctly.

FAQs Related to Axis Bank Personal Loan EMI Calculator 

1. Who is required to pay advance tax?

Any taxpayer whose total tax liability is ₹10,000 or more in a financial year, after deducting TDS, must pay advance tax. This includes salaried individuals, freelancers, businesses, and companies.

Total yearly income is estimated, and tax is calculated. TDS already deducted is subtracted. It must be paid in four installments through the Income Tax portal if the remaining tax is ₹10,000 or more

3. Is a penalty applicable if shares are sold after 15 December?

If capital gains arise after 15 December, tax should be paid by 15 March. Interest usually applies only if tax on already-earned income was not paid on time.

4. Is advance tax required if salary TDS is already deducted?

Total yearly income must be considered, including salary, capital gains, and interest. After subtracting the total expected TDS, advance tax is required only if there is a shortfall of ₹10,000 or more.

5. What happens if the advance tax is not paid?

If advance tax is not paid and the liability exceeds ₹10,000, interest at 1% per month may be charged on the unpaid amount under Sections 234B and 234C.