What is Advance Tax in India?
Advance tax is the income tax that should be paid in advance instead of a lump sum payment at year-end. It is also known as "pay-as-you-earn" tax.
Who should pay Advance Tax?
If your Estimated Tax Liability for the financial year, after deducting TDS, is ₹10,000 or more, you are required to pay advance tax.
Interest for Late Payment (Section 234C & 234B)
Failure to pay advance tax or short payment may lead to interest penalties of 1% per month on the defaulted amount. Calculating your installments early ensures compliance and saves costs.