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For businessesRates reviewed September 2026

Advance Tax Calculator with 234B and 234C Interest

An advance tax calculator tells you how much to deposit by each quarterly due date so that no interest accrues. Advance tax is payable where the tax payable for the year, after reducing tax deducted at source, tax collected at source and available reliefs and credits, is ₹10,000 or more. Under the Income-tax Act, 2025 the liability and computation sit in sections 403 to 408, which replaced sections 207 to 211 of the Income-tax Act, 1961 from 1 April 2026.

The schedule is unchanged. For FY 2026-27, described in the new Act as tax year 2026-27, you must have paid 15 per cent of the estimated liability by 15 June 2026, 45 per cent cumulatively by 15 September 2026, 75 per cent by 15 December 2026 and the whole amount by 15 March 2027. A taxpayer computing income on a presumptive basis under section 58, which merged the old sections 44AD, 44ADA and 44AE, pays the entire liability in a single instalment by 15 March. A resident individual aged 60 or above at any time in the tax year who has no income under the head profits and gains of business or profession is not liable to pay advance tax at all.

Two separate interest charges follow a default. Section 424, the successor to section 234B, runs at 1 per cent a month where advance tax paid is less than 90 per cent of the assessed tax, and runs from 1 April of the assessment period until the tax is paid. Section 425, the successor to section 234C, runs at 1 per cent a month for deferment of an individual instalment, for three months on each of the first three instalments and for one month on the last. Section 423, formerly section 234A, is a separate charge for filing the return late.

Advance Tax Calculator

Tax at the rates in force for the tax year, including surcharge and the 4% cess.

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Presumptive scheme under section 58 (44AD, 44ADA, 44AE)

The whole liability falls due in a single instalment by 15 March.

Resident senior citizen with no business or professional income

Aged 60 or above at any time in the tax year. Outside the advance tax net entirely.

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From 1 April 2027 until the balance is paid. Four months takes you to a 31 July 2027 return.

months

Net advance tax payable

₹3,00,000

on the 15/45/75/100 schedule

Estimated tax on total incomeincluding surcharge and cess
₹4,00,000
Less TDS, TCS and other credits
₹1,00,000
Net advance tax payable for the year
₹3,00,000
Due 15 Jun 2026 — 15% cumulativeshort by ₹15,000, 3 months of interest
₹45,000
Due 15 Sept 2026 — 45% cumulativeshort by ₹1,05,000, 3 months of interest
₹90,000
Due 15 Dec 2026 — 75% cumulativeshort by ₹1,95,000, 3 months of interest
₹90,000
Due 15 Mar 2027 — 100% cumulativeshort by ₹2,70,000, 1 month of interest
₹75,000
Interest under section 425 (234C)deferment of instalments
₹12,150
Interest under section 424 (234B)4 months from 1 April 2027
₹10,800
Total interest
₹22,950
  • Section 425 charges no interest where at least 12% was paid by 15 June or at least 36% by 15 September, and none on a shortfall caused by a capital gain that could not be estimated, provided the tax on it goes into the remaining instalments.
  • Section 424 interest runs on the whole shortfall of ₹2,70,000 because advance tax paid of ₹30,000 is under 90% of the assessed tax.
  • Both charges are simple interest at 1% a month, and a part of a month counts as a full month.

The formula

Advance tax for the year = Estimated tax on total income − TDS − TCS − Reliefs and credits | Interest = Shortfall × 1% × Number of months

Estimated tax on total income
Tax on the income you expect to earn for the tax year at the rates in force, including surcharge and the 4 per cent health and education cess.
Shortfall
The amount by which the cumulative advance tax actually paid by a due date falls short of the prescribed cumulative percentage of the tax due on the returned income.
Number of months
Three months for each of the first three instalments and one month for the 15 March instalment under section 425. For section 424 it is the period from 1 April until the shortfall is made good.

Section 425 interest is not charged if at least 12 per cent of the liability was paid by 15 June or at least 36 per cent by 15 September, and it is not charged on a shortfall caused by failure to estimate capital gains, provided the tax on that income is paid in the remaining instalments.

How to calculate it

  1. 1

    Estimate total income for the tax year

    Project salary, business income, house property, capital gains already realised, interest and dividend for the full year. For a business, extrapolate from actual results to date rather than repeating last year's figure, because interest is computed against the tax on the income finally returned.

  2. 2

    Compute the tax and deduct credits

    Apply the rates in force for the tax year, add surcharge and the 4 per cent cess, then deduct tax deducted at source, tax collected at source, foreign tax credit and any other relief. If the balance is below ₹10,000, no advance tax is due.

  3. 3

    Split the balance across four instalments

    Deposit 15 per cent by 15 June, 45 per cent cumulatively by 15 September, 75 per cent by 15 December and 100 per cent by 15 March. Each percentage is cumulative, so an excess paid in an earlier instalment carries forward and reduces the next one.

  4. 4

    Apply the presumptive and senior citizen exceptions

    A taxpayer under the presumptive scheme in section 58 pays the whole amount in one instalment by 15 March. A resident individual aged 60 or above with no business or professional income is outside the advance tax net entirely and pays self-assessment tax instead.

  5. 5

    Recompute at each due date

    Capital gains, a large dividend or a windfall received late in the year change the estimate. Section 425 spares you interest on capital gains you could not have estimated provided the tax on that gain is paid in the instalments falling due after the gain arises, or by 31 March where it arises after the last instalment date.

  6. 6

    Quantify interest for any default

    Compute section 425 interest instalment by instalment on the shortfall, then compute section 424 interest at 1 per cent a month on the total shortfall where the aggregate advance tax paid is below 90 per cent of the assessed tax. Both are simple interest and a part of a month counts as a full month.

Advance tax instalments for FY 2026-27 (tax year 2026-27)

Advance tax instalments for FY 2026-27 (tax year 2026-27)
Due dateCumulative advance tax payableRelief from section 425 interest
15 June 202615%No interest if at least 12% is paid
15 September 202645%No interest if at least 36% is paid
15 December 202675%Full 75% required
15 March 2027100%Full 100% required
15 March 2027, presumptive cases under section 58100% in a single instalmentSingle instalment, no quarterly test

Worked example

Estimated tax on total income for FY 2026-27
₹4,00,000
Tax deducted at source
₹1,00,000
Advance tax payable for the year
₹3,00,000
Actually paid by 15 June 2026
₹30,000
  • First instalment required by 15 June 2026 = ₹3,00,000 × 15% = ₹45,000
  • Safe harbour threshold = ₹3,00,000 × 12% = ₹36,000
  • Amount paid of ₹30,000 is below ₹36,000, so the relief in section 425 does not apply
  • Shortfall = ₹45,000 − ₹30,000 = ₹15,000
  • Interest under section 425 = ₹15,000 × 1% × 3 months = ₹450
  • Remaining schedule: ₹1,35,000 cumulative by 15 September 2026, ₹2,25,000 by 15 December 2026 and ₹3,00,000 by 15 March 2027

Interest under section 425 (section 234C) on the first instalment = ₹450

Frequently asked questions

The four due dates are 15 June 2026, 15 September 2026, 15 December 2026 and 15 March 2027, with cumulative payments of 15 per cent, 45 per cent, 75 per cent and 100 per cent of the estimated liability. A taxpayer under the presumptive scheme in section 58 pays the entire amount in a single instalment by 15 March 2027.
Any taxpayer whose tax payable for the year, after reducing tax deducted at source, tax collected at source and available reliefs and credits, is ₹10,000 or more. That covers individuals, firms, LLPs, companies and non-residents alike. The only carve-out is a resident individual aged 60 or above at any time in the tax year who has no income under the head profits and gains of business or profession.
Section 234B, now section 424 of the Income-tax Act, 2025, charges 1 per cent a month where the total advance tax paid during the year is less than 90 per cent of the assessed tax, and it runs from 1 April until the tax is paid. Section 234C, now section 425, charges 1 per cent a month for deferment of a particular instalment, for three months on each of the first three instalments and one month on the last. Both can apply to the same default.
One per cent per month or part of a month, as simple interest, under both section 424 and section 425 of the Income-tax Act, 2025. A part of a month is treated as a full month, so paying on the first day of a month costs the same as paying on the last. The rate is unchanged from sections 234B and 234C of the 1961 Act.
A resident individual who is 60 years or older at any time during the tax year and who has no income chargeable under the head profits and gains of business or profession is not liable to pay advance tax. A senior citizen who runs a business or profession remains fully liable. The exempted senior citizen pays the balance tax as self-assessment tax before filing the return.
A taxpayer computing income on a presumptive basis under section 58 of the Income-tax Act, 2025, which consolidated the earlier sections 44AD, 44ADA and 44AE, pays the whole of the advance tax in one instalment on or before 15 March of the tax year. The quarterly 15, 45 and 75 per cent tests do not apply, but a default on that single instalment still attracts interest.
Section 425 does not charge interest on a shortfall caused by an underestimate or failure to estimate capital gains, provided the tax on that income is paid in the remaining instalments falling due after the gain arises. Where the gain arises after the last instalment date, the tax must be paid by 31 March of the tax year. The relief covers only the shortfall attributable to that income, not the rest of the instalment.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

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