Who needs to pay advance tax, and when?
Reviewed June 2026
Income tax is designed as pay-as-you-earn. Once your estimated tax for the year, after TDS, crosses the prescribed limit, the law expects it in instalments through the year — a quarterly rhythm with the bulk paid by the final instalment in March.
This touches more people than expected: business owners and professionals, of course, but also salaried taxpayers with meaningful interest or rental income, and anyone with a capital-gains year. Taxpayers under the presumptive scheme get a gentler version — a single instalment near year-end.
The reward for keeping the rhythm is a smooth, interest-free year and no March surprises. The practical method is simple: re-estimate once a quarter and adjust the instalment. We run this calendar for clients as standard practice — a ten-minute check-in each quarter keeps the whole year tidy.
Does this sound like your situation?
Tell us what’s on your mind — we’ll look at your specific facts and set you on the confident path.
This explainer simplifies the law on purpose and is general guidance, not advice on your specific facts. Rules, rates and thresholds evolve. For your situation, talk to us — that first conversation is exactly what we’re here for.