Advance Tax Payment: Meaning, Exemption, and Due Date

Advance Tax Payment: Meaning, Exemption, and Due Date

Advance Tax must be paid by taxpayers whose net income tax liability is more than Rs 10,000 in a financial year. The Tax liability is estimated by estimating the total income of the taxpayers at the beginning of the financial year.

The taxpayers must note that the advance tax must be paid only if the net tax liability after TDS is more than Rs 10,000. If the net tax liability is less than that, the advance tax payment is not mandatory.

The advance tax is required to be paid in four instalments on the due dates specified by the Income Tax Department. The Due date to pay the third instalment of advance tax payments for FY 2025-26 is December 15, 2025.