How to Make Advance Tax Payment Online 2025?

Senior citizens: Senior citizens who are more than 60 years old and do not own an enterprise are exempt from paying advance tax.

Presumptive Tax Regime for Businesses (Section 44AD): For taxpayers who choose a presumptive tax regime under Section 44AD for businesses. They are supposed to pay the full advance tax liability in a single payment on or before 15 March. Nevertheless, they can also pay their tax liabilities by 31 March.

Presumptive Tax Regime for Independent Professionals (Section 44ADA): Independent professionals like architects, doctors, lawyers, consultants, etc., have to pay the full advance tax liability in a single payment either on or before 15 March. They also have the option to pay the entire amount by 31 March.

Advance Tax Due Dates for FY 2025-26

The following tables provide a comprehensive understanding of the due dates and liability of advance tax for various types of taxpayers.

Tax Advance Payment for Companies

Tax Advance Payment for Business Owners and Self-employed

Taxpayers Opting Presumptive Taxation

Regarding taxpayers who have chosen to use the Presumptive Taxation Scheme under Business Income Sections 44AD & 44ADA:

How to Pay Advance Tax Online 2025?

Listed below are the steps that need to be followed to make a successful online payment for advance tax.

Step 1: Visit the official Website of the Income Tax Department

Step 2: Click 'e-pay Tax' option under 'Quick Links'

Step 3: Now, Enter your 'PAN' and 'Mobile Number'. Click on 'Continue'

Step 4: Enter the 'OTP' received on your Mobile and Click on 'Proceed'

Step 5: Select First Tab i.e. 'Income Tax' Option and 'Continue'

Step 6: You'll have to fill in details such as the right assessment year, address, phone number, email address, bank name, captcha code and other details.

Step 5: Once you are done filling in the details, you'll be redirected to the bank's Net Banking page.

Step 6: Next, you'll get details of your payment including your challan number.

Step 7: It is important to report your payment after you've made the payment.

How to Calculate Advance Tax Payment?

You can easily calculate how much advance tax you will have to pay by following the steps and pointers given below:

Step 1:   Estimate how much income you earned in the financial year for which you are doing the advance tax calculation.

1. Income from any interest earned from FDs, savings account, etc.
2. Capital gains.
3.  Professional income.
4. Rental income.
5.  Income of minors if it is added to that of the taxpayer.
6. Any other income.

 Step 2:  Add your salary to the figure above to arrive at the gross taxable income.

Step 3: Calculate the tax payable by applying the latest income tax slab that is applicable to you.

Step 4: As per the TDS slab, deduct the TDS that is likely to get deducted or which has already been deducted.

If your tax liability after deduction of TDS exceeds Rs.10,000, you are liable to pay advance tax.

Calculation of Advance Tax - Example

Assumptions

1. Annual Gross Income: Rs.15,00,000
   1. Expenses (Estimate): Rs.8,00,000
   2. Balance: Rs.7,00,000

Income from other Sources (Added)

1. Fixed Deposit Interest: Rs.8,000
   1. Gross Total Income: Rs.7,08,000

Deduction under section 80D (Estimated)

1. PPF: Rs.30,000
2. LIC Premium: Rs.20,000

1. Medical Insurance: Rs.10,000
   1. Balance: Rs.6,48,000

1. Payable Tax: Rs.42,100
2. (Add) Education Cess: Rs.1,684
   1. Total: Rs.43,784

1. TDS (Estimate): Rs.20,000
   1. Advance Tax to be Paid: Rs.23,784.

The advance tax payment will be planned as follows:

Advance Tax Late Payment and Interest

Penalty for missing advance tax payment due date are as follows:

1. If advance tax paid by you is less than 90% of the assessed tax, then you will be charged an interest of 1% every month under Section 234B of the Income Tax Act.
2. The interest is computed as 1% interest on the defaulted amount for every month until the tax is paid off completely.
3. The same interest penalty will be applicable if you don't pay by the second or third deadline.
4. Under Section 234C of the Income Tax Act, if you do not pay your advance tax installment on time, then you will be charged an interest rate of 1%.

Below are the particulars in case of delay in payment of advance tax will attract interest under 234C:

Exemption in Advance Tax Payments

1. Senior citizens aged 60 years and above are exempted from paying the advance tax.
2. Salaried individuals falling under TDS net are exempted from paying the advance tax.
3. However, any earnings from sources such as interest, capital gains, rent and other non-salary income will attract advance tax.
4. If TDS deducted is more than the tax payable for the year, then one does not have to pay the advance tax.

Benefits of Paying Advance Tax

1. Advance tax helps in reducing stress of taxpayers.
2. By paying tax in advance, taxpayers do not have to worry about money shortage or tax payments at the last moment.
3. It speeds up the tax collection process.
4. It increases government funds as the government can earn an interest on the collected amount.
5. Advance tax payment saves people from defaulting on their tax payments.
6. It helps businesses in managing their finances well and provides an idea of the income they have earned during the year.

Refund in Advance Tax Payment

1. At the end of the year, if the Income Tax Department finds out that you have paid more tax than you should have paid, then it will refund the excess amount.
2. Taxpayers can claim refund by filling and submitting Form 30. They have to make the claim within a period of one year from the last year of the assessment year.

Which Forms are Required in Advance Tax?

Challan No. ITNS 280 is a form which has to be filled in on the given due dates. Pre0requisites of Challan No. ITNS 280 are given below:

1. Permanent Account Number (PAN) Details: It is important to publish correct PAN details. If you fail to do so, your tax will be deposited in someone’s name.
2. Assessment Year: Choose the proper assessment years for which you are going to pay your tax because it is going out in advance for the following financial year.
3. Selecting the Payment Type: The taxpayer needs to choose the payment type in the form. If the tax is paid for the same financial year on the basis of estimated income, it will be advance tax. On the other hand, if the tax is paid after the completion of the financial year, it is considered as self-assessment tax.

Once the payment is made, a Challan Identification Number (CIN) will be issued. The taxpayer needs to keep a note of this number and use it while filing the Income Tax Return (ITR). Apart from this, you also need to verify whether the income tax department has received the online payment.

Advance Tax Challan 280

Challan 280 allows people to pay their income tax online on the website of the Income Tax Department of India. On the website, people have to select this challan and fill the form and then use it to pay taxes online/office.

If they want to pay the tax offline, they have to download Challan 280 form from the Income tax welcome, fill it and submit it at the bank.

Presumptive Income Schemes

1. For Businesses: Taxpayers opting for the presumptive taxation scheme under section 44AD must pay the entire advance tax amount in a single instalment on or before 15 March. Alternatively, they can pay their tax dues by 31 March.
2. For Professionals: Independent professionals such as lawyers, doctors, and architects, covered under the presumptive scheme of section 44ADA, must also pay their entire advance tax liability in one instalment on or before 15 March. They can choose to pay the full amount by 31 March as well.