Income tax isn't always a once-a-year event. If your tax liability for the year crosses a threshold, the law expects you to pay advance tax in instalments as you earn — not all at the end.
Who has to pay
Anyone — salaried, business, freelancer or professional — whose total tax for the year (after TDS) exceeds the prescribed limit must pay advance tax. Salaried people with only salary income often have it covered by TDS, but side income can change that.
How it's paid
Advance tax is paid in instalments across the year (typically four), each covering a rising cumulative percentage of your estimated annual tax.
Why you shouldn't ignore it
- Missing instalments triggers interest under sections 234B and 234C.
- Freelancers and business owners are the most likely to owe it and forget.
- Estimating income early and paying on time avoids a nasty interest bill at filing.
Estimate your yearly income, work out the tax, subtract TDS, and pay the balance in instalments. A quick mid-year check keeps interest at zero.
Get started with GovYapar →
This article is for general information based on rules current at the time of writing and is not professional advice. Rules change — confirm specifics with a GovYapar expert before acting.
← Back to all articles