When a person becomes liable to pay Advance Tax

Every person is liable to pay advance tax if advance tax payable is Rs 10,000 or more. Tax on net income (plus surcharge) after deducting TDS (deducted/deductible) if exceeds Rs 10,000, assessee is liable to pay advance tax.
A senior citizen not having any income from business/profession is not liable to pay advance tax.

When advance tax payment becomes due

Due Date of payment of advance tax	For any assessee ( except column 3)	An assessee who declares his business/professional income In presumptive sections 44 AD(1) and 44 ADA (1)
On or before June 15 of the previous year	Up to 15% of advance tax payable
On or before Sept 15 of the Previous year	Up to 45% of advance tax	–
On or before December 15 of the Previous Year	Up to 75% of advance tax
On or before Mar 15 of the previous year	Up to 100% of advance tax	Up to 100% of advance tax payable

Consequence of Non-payment of Advance Tax

For default in payment of advance tax (234B)-

Interest under section 234B is applicable when:
- Your tax liability after reducing TDS for the financial year is more than Rs 10,000 and you did not pay any advance tax.
- OR
- You paid advance tax, but advance tax paid is less than 90% of ‘assessed tax’.

In any one of the above cases, interest under section 234B shall be applicable.
234C – Interest under this section is based on individual cut off dates. ( e.g. June 15, Sept 15, etc). It is calculated from the individual cut-off date till the date of actual payment of outstanding taxes.

Scenario	Rate of Interest	Period of Interest	Amount on which Interest is calculated
If Advance Tax paid on or before June 15 is less than 15% of the Amount*	Simple interest @1% per month	3 months	15% of Amount* (-)tax already deposited before June 15
If Advance Tax paid on or before September 15 is less than 45% of the Amount*	Simple interest @1% per month	3 months	45% of Amount* (-) tax already deposited before September 15
If Advance Tax paid on or before December 15 is less than 75% of the Amount*	Simple interest @1% per month	3 months	75% of Amount* (-) tax already deposited before December 15
If Advance Tax paid on or before March 15 is less than 100% of the Amount*	Simple interest @1% per month	————–	100% of Amount* (-) tax already deposited before March 15

Examples

Consider that your total tax liability for this financial year is Rs. 100,000 and it needs to be paid in installments as explained above. Assume there is no TDS here.
If you made partial payments instead, you will be liable to pay interest as per the last column in the table below: Total interest Payable is Rs 2600

Payment Dates	Advance Tax payable	Total Advance Tax paid ( Cumulative)	Shortfall (Cumulative)	Penalties (Cumulative)
15th June	15,000	5,000	10,000	@1% * 3*10,000 = 300
15th September	45,000	25,000	20,000	@1% * 3 *20,000 =600
15th December	75,000	35,000	40,000	@1% * 3 *40,000 =1200
15th March	1,00,000	50,000	50,000	@1% * 1 *50,000 =500

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