1. Who is Liable?
- Every taxpayer(individuals, HUFs, companies, firms, etc.) whose estimated tax liability for the financial year (FY) exceeds ₹10,000 after deducting TDS/TCS.
- Applies to:
- Salaried employees with additional income (rent, interest, capital gains, etc.).
- Self-employed professionals & businesses.
- Companies & firms.
2. Who is Exempt?
- Senior Citizens (60+ years)who are resident individuals and have no income from business/profession.
- Taxpayers opting for Presumptive Taxation (Sections 44AD/44ADA)(but must pay 100% advance tax by 15th March).
- Those whose total tax liability (after TDS/TCS) is ≤ ₹10,000.
3. Key Points
- Self-Assessment Required: Taxpayers must estimate their annual income and calculate tax liability.
- TDS/TCS Adjustment: Advance tax is payable only on the remaining tax liabilityafter deducting TDS/TCS.
- Non-Payment Penalty: Default attracts interest under Sections 234B & 234C.
4. Example
- A (Salaried + Freelancer):
- Total tax liability (FY 2024-25): ₹50,000
- TDS deducted: ₹30,000
- Advance Tax Payable: ₹20,000 (since ₹50,000 – ₹30,000 = ₹20,000 > ₹10,000 threshold).
5. Due Dates (Section 211)
| FOR REGULAR TAXPAYERS | % PAYABLE |
| 15th June | 15% |
| 15th Sept | 45% (cumulative) |
| 15th Dec | 75% (cumulative) |
| 15th March | 100% (cumulative) |
6. Consequences of Non-Compliance
- Interest under Section 234B: 1% per month if <90% of tax paid by 31st March.
- Interest under Section 234C: 1% per month for delayed instalments.
