Pay advance tax in four instalments if your estimated tax liability exceeds ₹10,000 in a year.
Jurisdiction
All of India
Who applies
Individual taxpayers, companies, firms, and any assessee whose estimated total income tax liability for the year exceeds ₹10,000 after deducting TDS
Typical time
Same day (online payment via net banking or debit card)
Fee
Free (no fee for the process; you pay the actual tax due)
| # | Document | Type needed | Purpose |
|---|---|---|---|
| 1 | PAN Card | Self-attested Copy | Required to generate Challan 280 and identify the taxpayer for tax credit |
| 2 | Estimated income calculation worksheet(optional) | Soft copy (PDF) | Self-prepared estimate of total income, applicable deductions, and tax liability to determine the advance tax instalments payable |
| 3 | Bank net-banking credentials or debit card | Original | Required to make online payment of Challan 280 via authorised bank gateway |
| 4 | Previous year ITR acknowledgement(optional) | Download / Print | Reference for computing current year's estimated tax liability based on last year's figures |
Original documents: Carry originals only for in-person visits — do not hand them over permanently unless explicitly required.
Before each instalment due date, estimate your total income for the full financial year — including salary, business profits, capital gains, rental income, and interest income. Apply the applicable slab rates (old or new regime) and claim available deductions (80C, 80D, etc.) to compute the estimated tax. Deduct TDS already deducted or expected to be deducted during the year. If the remaining tax exceeds ₹10,000, you are required to pay advance tax by the due dates.
Advance tax is payable in four instalments: at least 15% of the total estimated tax by 15 June; at least 45% by 15 September; at least 75% by 15 December; and 100% by 15 March of the financial year. Persons opting for the presumptive taxation scheme under Section 44AD or 44ADA need to pay the entire 100% in one instalment by 15 March. If income changes during the year (e.g., capital gain arises in Q3), adjust the remaining instalments accordingly.
Visit the e-Pay Tax section of the e-Filing portal at incometax.gov.in or the NSDL TIN portal, and select 'Challan 280 — Income Tax on Companies (Corporation Tax) / Income Tax (Other than Companies)'. Select the correct category (0021 for individuals and HUF; 0020 for companies), Assessment Year (the year following the current financial year), and Type of Payment — Minor Head 100 (Advance Tax). Enter your PAN, address, and the tax amount (including surcharge, health & education cess).
Proceed to payment using net banking (28 authorised banks listed on the portal) or by debit card. Alternatively, visit any authorised bank branch (SBI, HDFC, ICICI, etc.) with a manually filled Challan 280 form and pay over the counter in cash or cheque. After successful payment, you receive a challan counterfoil with the BSR code of the bank, challan serial number, date of deposit, and amount paid. Save this as proof for entering TDS/advance tax details in your ITR.
After 3–5 working days of payment, log in to the e-Filing portal and check your Form 26AS (Part C) or AIS to confirm that the advance tax payment is reflected against your PAN for the correct Assessment Year. The BSR code, challan serial number, and amount should match your payment receipt. Verify before filing your ITR to ensure the credit is available. If the payment does not appear, contact the bank with your payment receipt for correction.
Income Tax Department, Ministry of Finance
Exceptional cases — penalty proceedings or challan correction
Issues notices for non-payment or underpayment of advance tax, levies interest under Sections 234B and 234C, and approves challan correction requests.
Authorised bank (SBI, HDFC, ICICI, etc.)
Step 4 — Over-the-counter payment
Accepts physical Challan 280 payment at the bank counter, stamps the counterfoil, and uploads the challan data to OLTAS (Online Tax Accounting System).
Generate Challan 280 and make advance tax payment online via net banking or debit card.
Alternative portal to generate Challan 280 and pay advance tax; also used to verify challan status by BSR code.
Paying less than the required percentage of advance tax by each due date attracts interest at 1% per month on the shortfall under Section 234C; failure to pay 90% of total tax by 31 March attracts interest under Section 234B.
Always select Assessment Year (AY) as the year following the financial year being paid for — e.g., for FY 2024-25 payments, select AY 2025-26; an incorrect AY causes the payment to be applied to the wrong year.
Advance tax payments must use Minor Head 100 (Advance Tax); paying under Minor Head 300 (Self-Assessment Tax) will not qualify as advance tax and may trigger Section 234C interest.
Capital gains (especially short-term) are often unpredictable; if a large capital gain arises in Q3, include it in the December instalment to avoid Section 234C interest — you are not penalised for not including capital gains in earlier instalments.
Businesses and professionals under Sections 44AD and 44ADA who opt for presumptive taxation must pay the entire advance tax (100%) in a single instalment by 15 March; missing this date attracts the standard interest.