Section 211 of the Income Tax Act, 1961, mandates the payment of advance tax in four instalments during the financial year (FY) for most taxpayers, with specific due dates and percentages. Below is a detailed breakdown:
1. Regular Taxpayers (Non-Presumptive Income) [Section 211(1)(a)]
| DUE DATE | % OF ADVANCE TAX PAYABLE (CUMULATIVE) | KEY POINTS |
| 15th June | 15% | First instalment based on estimated income. |
| 15th September | 45% (less tax already paid) | Second instalment (total 45% cumulative). |
| 15th December | 75% (less tax already paid) | Third instalment (total 75% cumulative). |
| 15th March | 100% (less tax already paid) | Final instalment to cover full liability. |
Example:
- If total advance tax liability = ₹1,00,000:
- 15th June: ₹15,000
- 15th Sept: ₹30,000 (₹45,000 – ₹15,000)
- 15th Dec: ₹30,000 (₹75,000 – ₹45,000)
- 15th March: ₹25,000 (₹1,00,000 – ₹75,000).
Flexibility: Payments made after 15th March but before 31st March are still treated as advance tax for the FY.
2. Taxpayers Under Presumptive Taxation [Section 211(1)(b)]
- Applies to businesses (Section 44AD) and professionals (Section 44ADA).
- Single Instalment Due Date: 15th March(100% of tax liability).
- Exception: Payments can also be made by 31st Marchwithout penalties.
3. Key Exemptions
- Senior Citizens (60+ years): Exempt if they have no business/profession income.
- Tax Liability ≤ ₹10,000: No advance tax required.
4. Penalties for Non-Compliance
- Section 234B: 1% monthly interest if <90% of tax is paid by 31st March.
- Section 234C: 1% monthly interest for deferred instalments (e.g., shortfall in June/Sept/Dec payments).
5. Special Scenarios
- Corporate Taxpayers: Must pay electronically.
- NRIs: Liable if Indian income tax > ₹10,000.
Summary Table
| CATEGORY | DUE DATES | INSTALMENT % |
| Regular Taxpayers | 15th Jun, Sept, Dec, March | 15%, 45%, 75%, 100% |
| Presumptive Tax (44AD/44ADA) | 15th March (or 31st March) | 100% in one go |
