Advance Tax Calculator with Interest u/s 234B and 234C
Advance tax is "pay as you earn" income tax. If your estimated tax liability for the year, after deducting TDS and TCS, is ₹10,000 or more, you must pay it in instalments during the financial year instead of at the time of filing. This tool converts your estimated tax into the statutory instalment schedule, tracks what you have actually paid, and computes the interest that the department will charge if you fall short.
Instalment schedule (Section 211)
- On or before 15 June — 15% of total advance tax
- On or before 15 September — 45% (cumulative)
- On or before 15 December — 75% (cumulative)
- On or before 15 March — 100%
Taxpayers opting for presumptive taxation under sections 44AD or 44ADA may pay the entire amount in a single instalment by 15 March. Resident senior citizens (60+) with no business or professional income are exempt from advance tax altogether.
Interest u/s 234C — deferment of instalments
Simple interest at 1% per month is charged for three months on the shortfall in each of the first three instalments, and for one month on the shortfall in the March instalment. No interest is charged on the June and September instalments if at least 12% and 36% respectively has been paid. The shortfall is rounded down to the nearest ₹100.
Interest u/s 234B — default in payment
If the advance tax paid during the year is less than 90% of the assessed tax, interest at 1% per month (part of a month counted as full) runs from 1 April of the assessment year until the date of actual payment, on the shortfall.
Worked example
Estimated tax ₹2,40,000, TDS ₹60,000 → net liability ₹1,80,000. Instalments due: ₹27,000 by 15 June, ₹81,000 cumulative by 15 September, ₹1,35,000 by 15 December and ₹1,80,000 by 15 March. If nothing is paid during the year and the balance is cleared on 31 July, 234C interest = (27,000 + 81,000 + 1,35,000) × 1% × 3 + 1,80,000 × 1% × 1 = ₹9,090 and 234B interest = 1,80,000 × 1% × 4 months = ₹7,200.
Pay through Challan 280 (code 100) on the e-filing portal; the payment reflects in Form 26AS/AIS within a few days.
Frequently Asked Questions
Who has to pay advance tax?
Every person whose estimated tax liability for the year, after reducing TDS/TCS, is ₹10,000 or more — including salaried people with large other income, freelancers, businesses and investors with capital gains. Resident senior citizens without business income are exempt.
What happens if I miss the 15 June instalment?
Interest u/s 234C at 1% per month for three months is charged on the shortfall, unless you have paid at least 12% of the total by 15 June. You can make up the shortfall in the next instalment.
How is 234B different from 234C?
234C penalises deferment of individual instalments within the year (1% per month for 3 or 1 months). 234B applies when total advance tax paid is below 90% of assessed tax, charging 1% per month from 1 April until you pay.
Is advance tax needed on capital gains that arise late in the year?
Yes, but interest u/s 234C is not charged for earlier instalments if the gain arises after their due dates, provided you pay the tax in the remaining instalments. The calculator does not model this relaxation automatically.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.