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Tax

Advance Tax

Also known as: Pay As You Earn, Quarterly Tax Payment

Quarterly tax payments made during the year for income not subject to TDS.

Detailed Explanation

Advance tax is the income tax paid in advance during the financial year instead of paying it as a lump sum at the end. If your tax liability exceeds ₹10,000 after TDS, you must pay advance tax in four installments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. Failure to pay attracts interest under sections 234B and 234C.