Advance tax applies to anyone whose total tax liability for the year, after TDS, is expected to exceed ₹10,000 — which covers most business owners, professionals, and individuals with significant non-salary income.
The instalment schedule runs through the financial year, with cumulative percentages due by mid-June, mid-September, mid-December and mid-March.
Underestimating income — especially capital gains or one-off receipts that land later in the year — is the most common reason for advance tax shortfalls, which then attract interest under Sections 234B and 234C.
Reviewing your income estimate at each instalment date, rather than only once at the start of the year, is the simplest way to stay accurate and avoid unnecessary interest.
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