ITR 2025: What Is Advance Tax, Who Needs to Pay & Key Due Dates for FY 2025-26

Advance Tax Payment: Advance tax is considered income tax paid in advance instead of a whole sum payment at the end of the financial year. The taxpayer calculates the advance tax amount basis their estimated income for the concerned fiscal year. The payments of advance tax take place in form of instalments as per the due dates provided by the income tax department.

Payment of advance tax is mandatory for every person whose tax liability for the financial year is Rs 10,000 or more. If the person fails to make the payment of advance tax shall be liable to pay interest along with the tax amount.

Are You Under The Advance Tax Slab?

Salaried individuals, or any person engaged in profession or business, freelancers– If the total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. The advance tax applies to all taxpayers, salaried individuals, freelancers, and businesses.

Senior citizens: People aged 60 years or more who do not have income from any business or professional during the financial year are exempt from paying advance tax. Hence, only senior citizens (60 years or more) having business or professional income must pay advance tax.

Presumptive income for businesses: The taxpayers who have opted for the presumptive taxation scheme under section 44AD have to pay the whole amount of their advance tax in one instalment on or before March 15 of the fiscal year. They also have the option to pay all of their tax dues by 31st March.

Presumptive income for professionals: Independent professionals such as doctors, and lawyers come under the presumptive scheme under section 44ADA. They have to pay the whole of their advance tax liability in one instalment on or before March 15 of the fiscal year. They can also pay the entire amount by 31st March.

Advance Tax Due Dates For FY2025-26

You must pay advance tax before the financial year ends in four instalments. The first is on or before June 15th of the previous year and shouldn't be less than 15 per cent of advance tax

The second payment shall take place on or before September 15th of the previous year. The amount should not be less than 45 per cent of advance tax as reduced by the amount paid in the earlier instalment

The following installment which should constitute not less than 75 per cent of the advance tax as reduced by the amount paid in earlier instalments should occur on or before December 15th of the previous year. The final advance tax installment as reduced by the amount paid in the earlier instalments should be paid on or before March 15th of the previous year,