25 August 2026 · 4 min read
Where the estimated tax liability after TDS is ₹10,000 or more, advance tax is payable in four instalments — cumulatively 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March.
Section 234C charges interest for shortfall in an instalment, so a taxpayer who pays everything in March still pays interest for the earlier quarters. Section 234B charges interest where less than 90% of the assessed tax was paid before the year ended.
The common causes of shortfall are capital gains realised late in the year, interest and dividend income nobody estimated, and consultancy receipts where the client deducted TDS at 10% against a 30% slab liability.
The practical remedy is a mid-year estimate. Reforecast in September and December using actual figures to date, and adjust the remaining instalments. Capital gains are treated more leniently — they can be paid in the remaining instalments after they arise — but only if you act in that quarter.
Official sources
Rates, limits and due dates change by notification. Always confirm the current position on the department portal before acting.
This article is general information, not advice for a specific case. Please speak to us before acting on it.
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