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Advance Tax

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What is Advance Tax?

  • As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year.
  • Also called 'pay-as-you-earn' scheme, advance tax is the income tax payable if your tax liability is more than Rs. 10,000 in a financial year.
  • It should be paid in the year in which the income is received.
  • Advance tax is part of your annual Income tax payment.
  • Check if your employer or your contractor has paid any TDS before determining how much income tax (and advance tax is payable)

Who should pay Advance tax?

  • Advance tax applies to all tax payers, salaried, freelancers, and businesses.
  • Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax

Due Dates for payment of Advance Tax

  • Advance Tax Payment for FY 2017-18 & FY 2016-17 for both individual and corporate taxpayers
Due Date Advance Tax Payable
On or before 15th June 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

How to pay Advance Tax online?

Pre Advance Tax payment checks

Making the Advance Tax payment

  • To make e-Payment of your Advance tax, visit
  • The CHALLAN NO./ITNS 280 (Payment of Income tax & Corporation Tax) is the most commonly used Challan for payment of advance tax by individuals.
  • Fill the form that appears. The following are the most common selections
    • Tax Applicable: (0021) Income Tax (Other than Companies)
    • Enter the PAN Card Number as it appears on your PAN Card
    • Assessment Year: Enter the Assessment Year as 2018-19 if you are paying the advance tax for the financial year 2017-18
    • Full Name: No need to fill this because this data is displayed in the next screen automatically.
    • Address: Enter the various address columns.
      • Email and Mobile Number are optional fields
    • Type Of Payment: (100) Advance Tax
    • Mode Of Payment: Net-Banking and select the bank from where you wish to make the payment. You can also pay by Debit-card
    • Enter the verification characters shown
    • Click on Proceed button to go to the next page.
  • In the next page, your Name will be shown automatically. Verify that is your name. If this is not your name, chances are that you entered an incorrect PAN Card number in the previous screen.
  • If the details are correct, Click on Proceed button to go to the Net banking page of your banker.
    • SBI Bank Customers will be taken to the OLTAS page.
      • Choose your mode of payment. For example: Internet Banking
      • Cut off time for OLTAS transactions is 8: 00 P.M.:IST
      • Any transaction created and/or authorised between 8: 00 P.M.:IST and 12.00 A.M.:IST on a particular day will be processed after 8: 00 A.M.:IST on the next day.
      • If a transaction is created after 12:00 A.M.:IST and before 8: 00 A.M.:IST it will be processed only after 8: 00 A.M.:IST on the same day.
  • Login in your bank net banking page
  • The bank Direct Tax Details page will be displayed.
  • Enter the advance tax amount that you wish to pay under the Income Tax: head. Example: 8000
  • Press the Compute Total button to finalize the amount to be paid
  • Click on Make payment button at the end of the page to finish the payment
  • Your bank might do additional authentication such as OTP, Grid Card (as in case of ICICI Bank) etc to complete the payment process
  • Your bank will provide you with a Transaction Reference Number.
  • You will be directed to download a Challan copy.

Post-Advance Tax payment safeguards

  • Take a print of your Challan copy immediately.
  • Download the pdf copy of the Challan copy and save it somewhere secure (in the location where you typically save your tax data).
  • Make a note of these details somewhere important: BSR Code, Tender Date, Challan Serial Number and Amount (INR)

Related Lessons

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