Advance Tax Due Date for AY 2022-23 is listed below for easy reference. We shall discuss what is advance tax, its applicability, Calculation of Advance tax instalment, challan details and how to pay online.
What is Advance Tax?
Advance tax refers to the payment of your taxes in advance before the end of the financial year for the income earned in that financial year. The advance tax is to paid in four installments starting from June.
Advance Tax Applicability
Advance tax has to be paid in instalments by individual tax payers having income other than salary. Furthermore, the taxpayers who have opted for presumptive taxation under section 44AD or 44ADA must pay total advance tax before 15th March 2022.
You are required to pay advance tax only if
- You are a taxpayer having total tax liability of Rs 10,000 and above for the financial year 2021-22.
- The source of your income is other than Salary for the financial year.
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Who is not Liable to pay Advance Tax?
A resident senior citizen who does not have any income from business or profession is not obligated to pay advance tax.
Advance Tax Due Dates AY 2022-23
| Instalment | Advance Tax Due Date | Tax to be Paid |
| First Instalment | 15th June 2021 | 15% of tax liability |
| Second Instalment | 15th September 2021 | 45% of tax liability |
| Third Instalment | 15th December 2021 | 75% of tax liability |
| Fourth Instalment | 15th March 2022 | 100% of tax liability |
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Advance Tax Calculation
Steps to calculate Advance Tax Instalment
- Estimate your income as accurately as possible for current financial year 2021-22 based on the income received to date, income yet to receive and also previous financial year.
- Check the Income Tax Slabs and apply the tax rate applicable to you.
- You will get your estimated total tax liability.
- You need to pay your advance tax in Four instalments:
- First instalment – Calculate 15% of your total tax liability and pay online using challan 280 within advance tax due date of 15th June 2021.
- Second instalment – Calculate 45% of your total tax liability and pay online within advance tax due date of 15th September 2021.
- Third instalment – Calculate 75% of your total tax liability and pay online within advance tax due date of 15th December 2021.
- Fourth instalment – Calculate 100% of your total tax liability and pay online within advance tax due date of 15th March 2022.
👉 You may also directly calculate advance tax instalment using the Advance Tax Calculator
Interest on Advance Tax Calculation
If you do not pay the advance tax instalment before the advance tax due date or pay lower tax, you will have to pay interest as penalty under section 243C. However, interest will not be charged if you have paid the advance tax instalments in full by the end of the financial year. Furthermore, if you have failed to accurately estimate your income from lottery, capital gains, you need not pay any interest. Interest rates calculation vary for Corporate and Non-Corporate Taxpayers.
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Interest for Corporate Taxpayers
| Advance tax paid | Interest |
| Less than 12% of the total tax liability before 12th June | 1% per month for 3 months |
| Less than 36% of the total tax liability before 15th September | 1% per month for 3 months |
| Less than 75% of the total tax liability before 15th December | 1% per month for 3 months |
| Less than 100% of the total tax liability before 15th March | Simple interest of 1% |
Interest for Non-Corporate Taxpayers
| Advance tax paid | Interest |
| Less than 30% of the total tax liability before 15th September | 1% per month for 3 months |
| Less than 60% of the total tax liability before 15th December | 1% per month for 3 months |
| Less than 100% of the total tax liability before 15th March | Simple interest of 1% |
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Payment of Advance Tax on Receipt of Income tax Assessment Order
(1) Income tax assessment Order under section 210(3)
You may receive Income tax notice under section 210(3) if you fail to your advance tax within the due date or the advance tax amount paid by you is lower than the actual tax for the financial year and the regular assessment is also completed. The assessing officer can send this order latest by the last day of February.
Reply to the Income tax notice:
- If your estimate is lower than the assessing officer’s estimate you can submit your own estimate of current income/ advance tax in form 28A.
- If your estimate is higher than the assessing officer’s estimate you may pay the higher advance tax and no initiation is to be sent to the assessing officer.
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How to Pay Advance Tax for AY 2022-23?
Advance tax can be paid online as well as offline.
To Pay online:
- Login to the income tax website www.incometaxindia.com
- Click on e-payment of Taxes tab
- Now under the Service tab, select e-payment option
- To pay advance tax, select Challan 280
- Fill in the required details
- Choose Netbanking option to pay online
- After successful payment, a challan certificate will be displayed which will contain the information number, payment
- details and bank name via which e-payment was made.
- This certificate is proof of the payment that has been done
To Pay Advance Tax Offline
- You have to visit the designated bank branch and fill the challan form and then pay the taxes.