Who Actually Needs to Pay Advance Tax (and the Exact Due Dates)
By the QuickYield Team · Published September 15, 2026 · 5 min read
₹15,00,000 estimated annual income with zero TDS already paid works out to ₹97,500 in advance tax — due not all at once, but across four cumulative instalments starting mid-June. Advance tax applies once your total tax liability after TDS crosses ₹10,000 in a financial year, a threshold that catches far more people than just business owners: freelancers, consultants, and salaried employees with meaningful extra income (capital gains, rental income, interest) are all commonly on the hook for it.
Who actually needs to pay advance tax
If your total tax liability for the year, after subtracting any TDS already deducted, exceeds ₹10,000, advance tax applies to you — regardless of whether you’re salaried, self-employed, or a business owner. Salaried employees with only their salary income usually don’t need to worry about this separately, since employer TDS typically covers the full liability, but anyone with significant freelance income, capital gains, rental income, or interest income on top of a salary can easily cross the ₹10,000 threshold without realizing it.
The cumulative instalment schedule
Advance tax isn’t due as four equal instalments — it’s cumulative, meaning each due date has a target percentage of your total year’s liability paid by that point:
| Due date | Cumulative % of liability due |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
On the ₹97,500 example above (₹15,00,000 income, zero TDS): ₹14,625 due by 15 June, a cumulative ₹43,875 by 15 September, ₹73,125 by 15 December, and the full ₹97,500 by 15 March. Missing an instalment or underpaying attracts interest under Sections 234B and 234C — generally 1% per month on the shortfall — so it’s worth tracking these dates directly rather than waiting for a single year-end payment.
Advance tax liability by income level
At zero TDS already paid, under the new tax regime:
| Annual income | Advance tax due |
|---|---|
| ₹8,00,000 | ₹0 (below rebate threshold) |
| ₹10,00,000 | ₹0 (below rebate threshold) |
| ₹15,00,000 | ₹97,500 |
| ₹20,00,000 | ₹1,92,400 |
| ₹30,00,000 | ₹4,75,800 |
Notice income at ₹8-10 lakh shows zero advance tax liability — this reflects the new regime’s Section 87A rebate, which brings tax to nil up to ₹12 lakh taxable income. Above that threshold, liability (and the advance tax obligation on it) begins.
Enter your own estimated annual income and any TDS already paid into our Advance Tax Calculator for your exact instalment schedule.
Frequently asked questions
›Who needs to pay advance tax in India?
Anyone whose total tax liability for the year, after subtracting TDS already deducted, exceeds ₹10,000 — this includes freelancers, business owners, and salaried employees with significant additional income like capital gains, rental income, or interest.
›What are the advance tax due dates?
15 June (15% of the year's liability), 15 September (cumulative 45%), 15 December (cumulative 75%), and 15 March (100%) — each is a cumulative target, not a separate equal instalment.
›What happens if I miss an advance tax instalment?
Interest generally applies under Sections 234B and 234C on the shortfall, typically around 1% per month — it's usually far cheaper to pay close to on time than to let it accumulate to a single year-end payment.
›Do salaried employees need to pay advance tax?
Usually not separately, since employer TDS typically covers their full liability — but salaried employees with meaningful extra income (freelance work, capital gains, rental income) can still cross the ₹10,000 threshold and owe advance tax on that additional liability.
Try it yourself
Open the Advance Tax Calculator →
Continue reading
This article is for general information only and isn’t financial, tax, or legal advice. See our disclaimer.