Estimate statutory advance tax installments, check deferment interest under Section 234C, and prevent default interest under Section 234B.
₹1,20,000
Enter total cumulative advance tax paid on or before each deadline.
✨ Excellent! No Section 234B or 234C interest penalties incurred.
Must pay at least 90% of total tax (₹1,08,000) by 31st March. You paid ₹1,20,000.
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Formulas, statutory slab logic, and edge-case exceptions authored and reviewed by Ganamurthy N N (M.S. Software Engineering, BITS Pilani | CFP® Certification Candidate — 3/4 Modules Cleared) • View Editorial Methodology →
Advance tax is payable if net estimated tax liability (after deducting TDS/TCS) exceeds ₹10,000. Interest under Section 234C is charged at 1% simple interest per month on quarterly shortfalls, while Section 234B levies 1% per month from April 1 if less than 90% of assessed tax is paid.
Advance Tax Liability = Assessed Total Tax - Eligible TDS / TCS
Applies if Net Tax Liability > ₹10,000
Section 234C Interest = Shortfall Amount × 1% per month × Duration (3 months / 1 month)
• 15 June: 15% cumulative (Safe cushion: No penalty if ≥ 12% paid)
• 15 Sept: 45% cumulative (Safe cushion: No penalty if ≥ 36% paid)
• 15 Dec: 75% cumulative (No cushion)
• 15 March: 100% cumulative (1 month @ 1%)
Section 234B Interest = (Assessed Tax - Advance Tax Paid) × 1% per month
• Triggered if Advance Tax paid on or before 31st March < 90% of Assessed TaxTotal tax liability after rebates but before TDS/TCS credits.
Difference between statutory cumulative milestone percentage and actual tax deposited.
Fractions of a month are rounded up to a full month, and amounts are rounded down to nearest ₹100.
Scenario: Investor with freelance and capital gains earnings has ₹2,00,000 net tax liability after TDS. Taxpayer missed the June and Sept installments and paid ₹1,50,000 in December.
Since 100% was paid before March 31, Section 234B interest is ₹0!
Prescribed payment milestones under Section 211 of the Income Tax Act
| Installment Milestone | Statutory Due Date | Cumulative Tax Required | Safe Harbor Cushion (No 234C Penalty) |
|---|---|---|---|
| 1st Installment | On or before June 15 | 15% of estimated tax | No penalty if ≥ 12% is paid |
| 2nd Installment | On or before September 15 | 45% of estimated tax | No penalty if ≥ 36% is paid |
| 3rd Installment | On or before December 15 | 75% of estimated tax | No cushion. Full 75% required |
| 4th Installment | On or before March 15 | 100% of estimated tax | Full 100% required (1 month interest penalty) |
* Section 44ADA and 44AD presumptive taxpayers are exempt from tranches 1, 2, and 3, and can pay 100% by March 15.
If you deposit at least 12% (instead of 15%) by June 15, or at least 36% (instead of 45%) by September 15, the tax department levies zero Section 234C penalty. This preserves liquidity without penalties.
Under Rule 119A, interest under 234B and 234C is calculated for a whole month even if the payment delay is only by a single day (e.g., paying on June 16 instead of June 15 incurs a full month interest charge).
Under Section 207, resident individuals aged 60 or older who do not have any business or professional earnings are completely exempt from paying advance tax, regardless of interest or pension size.
Under the proviso to Section 234C, if capital gains (LTCG/STCG), lottery winnings, or unexpected dividend income arise after the earlier installment due dates, NO interest under Section 234C is levied for the past quarters—provided you pay the remaining tax in the subsequent upcoming installments or on or before March 31 of the financial year.
Yes! Under Section 207 of the Income Tax Act, resident senior citizens aged 60 years or above who do not have any income under "Profits and Gains of Business or Profession" (PGBP) are completely exempt from paying advance tax. They can settle their entire tax liability at the time of filing their ITR via Self-Assessment Tax without any interest penalty.
Yes. Advance tax is calculated strictly on your net tax liability. You compute your total estimated tax for the year and subtract all TDS and TCS credits deducted by your employer, clients, or banks. You are required to pay advance tax only if the remaining balance exceeds ₹10,000.
Under Rule 119A of the Income Tax Rules: 1. Any fraction of a month is rounded up to a FULL month. For instance, a delay of 2 days is treated as 1 full month of interest. 2. The principal shortfall amount is rounded down to the nearest multiple of ₹100 by ignoring any fractional rupees.
Section 234C penalizes quarterly deferment of advance tax during the ongoing financial year (June, Sept, Dec, March) at 1% simple interest per month on the shortfall for each quarter. Section 234B penalizes default in total advance tax payment where less than 90% of assessed tax was paid before March 31; interest is levied at 1% per month starting from April 1 of the assessment year until full payment.
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