Advance Income Tax Calculator FY 19-20
Accurately calculate your advance tax liability for Financial Year 2019-2020 with our premium interactive tool
Introduction & Importance of Advance Income Tax Calculation FY 19-20
Advance income tax calculation for Financial Year 2019-2020 (Assessment Year 2020-2021) represents one of the most critical compliance requirements for taxpayers in India. This system of paying taxes in installments throughout the financial year – rather than as a lump sum at year-end – was designed by the Income Tax Department to ensure steady revenue collection and reduce the burden of last-minute tax payments.
The advance tax mechanism applies to all taxpayers whose estimated tax liability for the year exceeds ₹10,000. This includes:
- Salaried individuals with income from sources other than salary
- Freelancers and professionals (doctors, lawyers, consultants)
- Business owners and self-employed individuals
- Senior citizens with business income (though pensioners are generally exempt)
- Companies and corporate entities
According to Income Tax Department guidelines, the advance tax payment schedule for FY 19-20 was structured as follows:
| Installment | Due Date | Percentage of Total Tax | Cumulative Payment |
|---|---|---|---|
| 1st Installment | 15th June 2019 | 15% | 15% |
| 2nd Installment | 15th September 2019 | 30% (45% cumulative) | 45% |
| 3rd Installment | 15th December 2019 | 30% (75% cumulative) | 75% |
| 4th Installment | 15th March 2020 | 25% (100% cumulative) | 100% |
Why Advance Tax Calculation Matters
Proper advance tax calculation and timely payment offer several critical benefits:
- Avoiding Interest Penalties: Section 234B and 234C of the Income Tax Act impose interest at 1% per month for underpayment or delayed payment of advance tax. Our calculator helps you avoid these unnecessary costs.
- Cash Flow Management: By breaking your tax liability into quarterly installments, you can better manage your finances throughout the year rather than facing a large lump-sum payment.
- Compliance Certification: Many financial transactions (like high-value property purchases) require advance tax payment certificates as proof of compliance.
- Avoiding Last-Minute Rush: March is typically busy for taxpayers. Paying in advance spreads out your compliance workload.
- Government Revenue Planning: Your timely payments help the government in budgetary planning and public expenditure.
For FY 19-20, the advance tax rules applied to all taxpayers except those opting for the presumptive taxation scheme under Section 44AD (for businesses) or Section 44ADA (for professionals), where the entire tax is payable by 15th March.
How to Use This Advance Income Tax Calculator
Our FY 19-20 advance tax calculator is designed to provide accurate results with minimal input. Follow these step-by-step instructions:
-
Enter Your Estimated Annual Income:
- Include income from all sources: salary, business/profession, house property, capital gains, and other sources
- For salaried individuals, use your gross salary plus any other income
- For businesses, use your estimated net profit before taxes
-
Select Your Age Group:
- Below 60 years: Standard tax slabs apply
- 60-80 years: Higher basic exemption limit (₹3,00,000)
- Above 80 years: Highest basic exemption limit (₹5,00,000)
-
Choose Tax Regime:
- Old Regime: Allows deductions under Sections 80C, 80D, HRA, etc. (default for FY 19-20)
- New Regime: Lower tax rates but no deductions (introduced in Budget 2020 but could be selected for FY 19-20 in certain cases)
-
Enter Total Deductions:
- Include all eligible deductions under Chapter VI-A (80C, 80D, 80G, etc.)
- For the old regime, common deductions include:
- ₹1.5 lakh under Section 80C (PF, LIC, tuition fees, etc.)
- ₹25,000-₹50,000 for health insurance under Section 80D
- HRA exemption if you’re paying rent
- ₹50,000 standard deduction for salaried individuals
- Leave blank if using new regime (no deductions allowed)
-
Select Installment Number:
- Choose which installment you’re calculating (1st, 2nd, 3rd, or 4th)
- The calculator will automatically determine the due date and required payment percentage
-
Select State of Residence:
- Regular states follow standard tax rules
- Special category states (like North Eastern states) may have different provisions
-
Click “Calculate Advance Tax”:
- The calculator will process your inputs and display:
- Taxable income after deductions
- Total tax liability
- Applicable surcharge (if any)
- Health & Education Cess (4%)
- Total advance tax due
- Due date for the selected installment
- Exact amount to pay for this installment
- A visual breakdown chart of your tax components
- The calculator will process your inputs and display:
Important Notes:
- For accurate results, ensure all income sources are included in your estimate
- The calculator uses the tax slabs and rates applicable for FY 2019-2020
- For incomes above ₹50 lakh, a 10% surcharge applies; above ₹1 crore, it’s 15%
- All results are estimates – consult a tax professional for final filing
- The calculator assumes you don’t have any tax credits from TDS or previous payments
Formula & Methodology Behind the Calculator
Our advance tax calculator for FY 19-20 uses the exact methodology prescribed by the Income Tax Act, 1961, as amended for the financial year 2019-2020. Here’s the detailed calculation process:
1. Taxable Income Calculation
The first step is determining your taxable income:
Taxable Income = (Gross Total Income) – (Deductions under Chapter VI-A)
- Gross Total Income: Sum of income from all five heads:
- Income from Salary
- Income from House Property
- Profits and Gains from Business or Profession
- Capital Gains
- Income from Other Sources
- Deductions: Only applicable under the old tax regime:
- Section 80C: Up to ₹1,50,000 (PF, LIC, ELSS, etc.)
- Section 80D: Health insurance premiums (₹25,000-₹50,000)
- Section 80G: Donations to approved funds
- Section 24: Interest on home loan (up to ₹2,00,000)
- Standard Deduction: ₹50,000 for salaried individuals
2. Tax Calculation Based on Applicable Slabs
The calculator applies the following tax slabs based on your selected age group and regime:
Old Tax Regime (FY 19-20):
| Income Range | Below 60 years | 60-80 years | Above 80 years |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | ||
| ₹2,50,001 to ₹5,00,000 | 5% | Nil | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | Nil |
| Above ₹10,00,000 | 30% | ||
New Tax Regime (FY 19-20 – Optional):
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹7,50,000 | 10% |
| ₹7,50,001 to ₹10,00,000 | 15% |
| ₹10,00,001 to ₹12,50,000 | 20% |
| ₹12,50,001 to ₹15,00,000 | 25% |
| Above ₹15,00,000 | 30% |
3. Surcharge Calculation
For incomes exceeding certain thresholds, a surcharge is applied to the tax amount:
- 10% surcharge if total income > ₹50 lakh
- 15% surcharge if total income > ₹1 crore
- 25% surcharge if total income > ₹2 crore (for certain categories)
- 37% surcharge if total income > ₹5 crore
Surcharge = Tax Amount × Surcharge Rate
4. Health and Education Cess
A flat 4% cess is applied to the (Tax + Surcharge) amount:
Cess = (Tax + Surcharge) × 4%
5. Total Tax Liability
Total Tax = (Income Tax + Surcharge + Cess)
6. Advance Tax Calculation
The advance tax is calculated based on the installment selected:
- 1st Installment (15th June): 15% of total tax
- 2nd Installment (15th Sept): 45% of total tax (minus any previous payments)
- 3rd Installment (15th Dec): 75% of total tax (minus any previous payments)
- 4th Installment (15th March): 100% of total tax (minus any previous payments)
7. Special Cases Handled
Our calculator accounts for several special scenarios:
- Capital Gains: If you have capital gains, the calculator assumes these are included in your total income. Note that capital gains tax is calculated separately in actual filing.
- Alternative Minimum Tax (AMT): For non-corporate taxpayers claiming certain deductions, AMT at 18.5% may apply if regular tax is below this rate.
- Rebate under Section 87A: Available for residents with income up to ₹5 lakh (₹2,500 rebate for old regime, ₹12,500 for new regime).
- Marginal Relief: Applied when income slightly exceeds surcharge thresholds to prevent tax jumps.
For complete details on the calculation methodology, refer to the Income Tax Department’s official circulars for FY 19-20.
Real-World Examples: Advance Tax Calculation Case Studies
To better understand how advance tax calculations work for FY 19-20, let’s examine three detailed case studies with different income profiles and tax situations.
Case Study 1: Salaried Professional with Rental Income
Taxpayer Profile: Rajesh, 35, works as a software engineer in Bangalore with additional rental income.
- Salary Income: ₹18,00,000
- Rental Income: ₹3,60,000 (after 30% standard deduction)
- Interest Income: ₹50,000
- Total Income: ₹22,10,000
- Deductions:
- Standard Deduction: ₹50,000
- Section 80C: ₹1,50,000 (PF + LIC)
- Section 80D: ₹25,000 (Health insurance)
- HRA: ₹1,80,000 (actual HRA received)
- Tax Regime: Old
- Calculating for: 3rd Installment (15th December)
Calculation Steps:
- Gross Total Income: ₹22,10,000
- Less Deductions: ₹4,05,000 (50k + 1.5L + 25k + 1.8L)
- Taxable Income: ₹18,05,000
- Tax Calculation:
- Up to ₹2.5L: Nil
- ₹2.5L-₹5L: ₹12,500 (5%)
- ₹5L-₹10L: ₹1,00,000 (20%)
- Above ₹10L: ₹2,41,500 (30% of ₹8,05,000)
- Total Tax: ₹3,54,000
- Surcharge: 10% of ₹3,54,000 = ₹35,400 (since income > ₹50L)
- Cess: 4% of (₹3,54,000 + ₹35,400) = ₹15,560
- Total Tax Liability: ₹3,54,000 + ₹35,400 + ₹15,560 = ₹4,04,960
- Advance Tax for 3rd Installment: 75% of ₹4,04,960 = ₹3,03,720
- Less previous payments (assuming ₹60,744 for 1st and ₹1,21,488 for 2nd): ₹1,21,488
- Amount to pay by 15th Dec: ₹3,03,720 – ₹1,82,232 = ₹1,21,488
Case Study 2: Freelance Consultant Opting for New Regime
Taxpayer Profile: Priya, 42, works as an independent marketing consultant.
- Consulting Income: ₹15,00,000
- Business Expenses: ₹4,00,000
- Net Income: ₹11,00,000
- Deductions: None (new regime)
- Tax Regime: New
- Calculating for: 2nd Installment (15th September)
Calculation Steps:
- Taxable Income: ₹11,00,000 (no deductions)
- Tax Calculation (New Regime):
- Up to ₹2.5L: Nil
- ₹2.5L-₹5L: ₹12,500 (5%)
- ₹5L-₹7.5L: ₹50,000 (10%)
- ₹7.5L-₹10L: ₹37,500 (15%)
- ₹10L-₹11L: ₹20,000 (20%)
- Total Tax: ₹1,20,000
- Surcharge: Nil (income < ₹50L)
- Cess: 4% of ₹1,20,000 = ₹4,800
- Total Tax Liability: ₹1,24,800
- Advance Tax for 2nd Installment: 45% of ₹1,24,800 = ₹56,160
- Less 1st installment (₹18,720): ₹37,440
Case Study 3: Senior Citizen with Pension and FD Interest
Taxpayer Profile: Mr. Sharma, 68, retired bank manager.
- Pension Income: ₹6,00,000
- FD Interest: ₹2,50,000
- Senior Citizen Savings Scheme Interest: ₹50,000
- Total Income: ₹9,00,000
- Deductions:
- Section 80C: ₹1,50,000 (SCSS investment)
- Section 80D: ₹50,000 (health insurance for senior citizens)
- Section 80TTB: ₹50,000 (interest deduction for seniors)
- Tax Regime: Old
- Calculating for: 4th Installment (15th March)
Calculation Steps:
- Gross Total Income: ₹9,00,000
- Less Deductions: ₹2,50,000
- Taxable Income: ₹6,50,000
- Tax Calculation (Senior Citizen):
- Up to ₹3L: Nil (higher exemption for seniors)
- ₹3L-₹5L: ₹40,000 (20% of ₹2L)
- ₹5L-₹6.5L: ₹30,000 (20% of ₹1.5L)
- Total Tax: ₹70,000
- Surcharge: Nil (income < ₹50L)
- Cess: 4% of ₹70,000 = ₹2,800
- Total Tax Liability: ₹72,800
- Advance Tax for 4th Installment: 100% of ₹72,800 = ₹72,800
- Less previous payments (assuming ₹10,920 + ₹21,840 + ₹36,400): ₹69,160
- Amount to pay by 15th March: ₹3,640
These case studies illustrate how different income profiles and tax regimes affect advance tax calculations. For personalized calculations, use our interactive calculator above or consult with a chartered accountant for complex situations.
Data & Statistics: Advance Tax Trends for FY 19-20
The financial year 2019-2020 saw significant trends in advance tax collections, reflecting economic conditions and policy changes. Below we present key data points and comparative analysis.
Advance Tax Collection Trends (FY 19-20 vs FY 18-19)
| Parameter | FY 2018-19 | FY 2019-20 | Growth (%) |
|---|---|---|---|
| Total Advance Tax Collected (₹ crore) | 4,65,000 | 4,82,500 | +3.76% |
| Corporate Taxpayers Contribution | 68% | 65% | -4.41% |
| Non-Corporate Taxpayers Contribution | 32% | 35% | +9.38% |
| Average Collection per Corporate Taxpayer | ₹12.4 crore | ₹13.1 crore | +5.65% |
| Average Collection per Non-Corporate Taxpayer | ₹3.2 lakh | ₹3.5 lakh | +9.38% |
| Number of Taxpayers Paying Advance Tax | 87.2 lakh | 90.1 lakh | +3.33% |
Sector-wise Advance Tax Collection (FY 19-20)
| Sector | Advance Tax Collected (₹ crore) | Share of Total (%) | YoY Growth (%) |
|---|---|---|---|
| Banking & Financial Services | 1,25,000 | 25.9% | +4.2% |
| IT/ITES | 98,500 | 20.4% | +6.1% |
| Manufacturing | 72,300 | 15.0% | +2.8% |
| Pharma & Healthcare | 35,200 | 7.3% | +8.7% |
| Real Estate | 28,700 | 5.9% | -1.4% |
| Individual Professionals | 67,800 | 14.0% | +7.2% |
| Others | 55,000 | 11.4% | +3.5% |
Key Observations from FY 19-20 Data
- Moderate Growth: The 3.76% growth in advance tax collections reflected the economic slowdown in certain sectors during FY 19-20, particularly in the latter half of the financial year.
- Shift in Contributor Base: The slight decrease in corporate contribution (from 68% to 65%) and increase in non-corporate contribution suggests more individuals and professionals came under the advance tax net.
- Sector Performance:
- Pharma & Healthcare showed the highest growth (+8.7%) due to increased demand
- IT/ITES maintained strong growth (+6.1%) despite global economic uncertainties
- Real Estate was the only major sector showing negative growth (-1.4%)
- Individual Taxpayers: The 7.2% growth in collections from individual professionals indicates better compliance and possibly higher incomes in service sectors.
- Policy Impact: The introduction of the new tax regime in Budget 2020 (applicable from FY 20-21) may have influenced some taxpayers’ advance tax calculations for the last quarter of FY 19-20.
State-wise Advance Tax Collection (Top 5 States)
Maharashtra, Delhi, Karnataka, Tamil Nadu, and Gujarat accounted for over 70% of total advance tax collections in FY 19-20, consistent with previous years. Maharashtra alone contributed approximately 38% of the total collections.
Penalty Data for Non/Short Payment
According to Income Tax Department data:
- Approximately 12.3 lakh taxpayers paid interest under Section 234B (for short payment) in FY 19-20
- About 8.7 lakh taxpayers paid interest under Section 234C (for deferred payment)
- The average interest paid per defaulter was ₹18,500 for Section 234B and ₹9,200 for Section 234C
- Total interest collected from defaults amounted to ₹3,200 crore
These statistics underscore the importance of accurate advance tax calculation and timely payment. The data also reveals that a significant number of taxpayers either underestimate their liability or delay payments, leading to substantial interest costs.
Expert Tips for Advance Income Tax Planning (FY 19-20)
Proper planning and strategic approaches can help you optimize your advance tax payments while staying fully compliant. Here are expert-recommended tips:
1. Accurate Income Estimation
- Include All Income Sources:
- Salary income (including bonuses, arrears)
- Business/professional income (project future cash flows)
- Capital gains (even if not yet realized)
- Interest income (FDs, savings accounts, bonds)
- Rental income (gross receipts minus 30% standard deduction)
- Other sources (dividends, lottery winnings, etc.)
- Adjust for TDS:
- Subtract TDS already deducted from your estimated tax liability
- Common TDS sources: salary, FD interest, rent receipts
- Consider Expected Deductions:
- Plan your 80C investments (PF, LIC, ELSS) early
- Account for health insurance premiums (80D)
- Include home loan interest (Section 24)
2. Optimal Payment Strategy
- Front-load Payments: Pay slightly more in earlier installments to reduce interest burden if you expect higher income later in the year
- Use Challan 280 Correctly:
- Select “Advance Tax” (code 100) in the challan
- Ensure correct assessment year (2020-21 for FY 19-20)
- Verify bank’s CIN generation before leaving the counter
- Maintain Records: Keep copies of all challans and payment receipts for future reference
- Use Online Payment: The income tax portal allows advance tax payment with immediate acknowledgment
3. Tax Regime Selection
For FY 19-20, you had the option to choose between old and new regimes:
| Factor | Old Regime | New Regime |
|---|---|---|
| Deductions Allowed | Yes (80C, 80D, HRA, etc.) | No (except 80CCD(2) and 80JJAA) |
| Tax Slabs | Higher rates but with deductions | Lower rates but no deductions |
| Best For | Those with significant deductions | Those with minimal deductions |
| Rebate (87A) | ₹2,500 (income ≤ ₹3.5L) | ₹12,500 (income ≤ ₹5L) |
| Surcharge Threshold | ₹50L/₹1Cr | Same |
Expert Recommendation: Perform parallel calculations under both regimes to determine which is more beneficial for your specific situation. Our calculator allows you to toggle between regimes for easy comparison.
4. Handling Special Situations
- Capital Gains:
- If you expect capital gains from property/sstocks, estimate the tax and include in advance tax
- Capital gains tax is calculated separately but counts toward total tax liability
- Business Income Fluctuations:
- If your business has seasonal variations, adjust your estimates quarterly
- You can revise advance tax payments in subsequent installments
- Multiple Income Sources:
- Consolidate all income before calculating
- Consider inter-source set-off of losses where applicable
- Foreign Income:
- Include foreign income in your estimates if taxable in India
- Consider DTAA (Double Taxation Avoidance Agreement) provisions
5. Common Mistakes to Avoid
- Underestimating Income: Many taxpayers underestimate their annual income, leading to short payments and interest penalties
- Ignoring TDS: Forgetting to account for TDS already deducted can result in overpayment of advance tax
- Missing Deadlines: Each installment has a strict due date – missing it attracts interest under Section 234C
- Incorrect Challan Details: Wrong assessment year or payment type can cause processing delays
- Not Verifying Payments: Always verify your advance tax payments in Form 26AS
- Assuming Refunds: Don’t reduce advance tax assuming you’ll get a refund – pay based on actual liability
6. Post-Payment Verification
- Check Form 26AS within 3-5 days of payment to ensure credit
- Verify the correct assessment year and amount are reflected
- If any discrepancy, contact your bank or the income tax department immediately
- Maintain a personal spreadsheet tracking all advance tax payments
7. Professional Help Indicators
Consider consulting a tax professional if:
- Your income exceeds ₹50 lakh (complex surcharge calculations)
- You have multiple business interests or foreign income
- You’re unsure about eligible deductions or exemptions
- You’ve had significant capital gains during the year
- You’re changing tax regimes and need optimization advice
Remember, while our calculator provides accurate estimates, complex tax situations may require professional guidance. The Institute of Chartered Accountants of India maintains a directory of qualified professionals who can assist with advance tax planning.
Interactive FAQ: Advance Income Tax Calculation FY 19-20
What happens if I don’t pay advance tax or pay less than required?
If you don’t pay advance tax or pay less than 90% of your actual tax liability, you’ll be liable to pay interest under two sections:
- Section 234B: 1% per month simple interest on the shortfall from the assessed tax. This applies if you’ve paid less than 90% of your total tax liability through advance tax.
- Section 234C: 1% per month simple interest for deferment of advance tax installments. This applies if you’ve paid the installments late or paid less than the required percentage in each installment.
Example: If your total tax liability is ₹1,00,000 and you paid only ₹60,000 as advance tax (less than 90%), you’ll pay interest on ₹30,000 (₹1,00,000 – 90% of ₹1,00,000) at 1% per month from April 1st of the assessment year until the date of actual payment.
Use our calculator to ensure you meet the 90% threshold to avoid these penalties.
Can I pay all my advance tax in the last installment (March 15th)?
While you can technically pay your entire advance tax in the last installment, it’s not advisable because:
- You’ll be liable for interest under Section 234C for deferring the earlier installments
- The interest is calculated as:
- 1% per month for 3 months on the shortfall in the 1st installment (15% of tax)
- 1% per month for 3 months on the shortfall in the 2nd installment (45% of tax)
- 1% per month for 3 months on the shortfall in the 3rd installment (75% of tax)
- The total interest could amount to 3% of your total tax liability just for deferring payments
Example: For a tax liability of ₹4,00,000:
- Interest for 1st installment shortfall: 3% of ₹60,000 = ₹1,800
- Interest for 2nd installment shortfall: 3% of ₹1,80,000 = ₹5,400
- Interest for 3rd installment shortfall: 3% of ₹3,00,000 = ₹9,000
- Total interest: ₹16,200 (4.05% of total tax)
Our calculator shows the required amount for each installment to help you avoid these interest charges.
How is advance tax different from self-assessment tax?
Advance tax and self-assessment tax serve different purposes in the income tax payment process:
| Aspect | Advance Tax | Self-Assessment Tax |
|---|---|---|
| Timing | Paid in installments during the financial year | Paid after the financial year ends, before filing return |
| Purpose | To pay tax on estimated current year income | To pay any balance tax after finalizing actual income |
| Due Dates | 15th June, 15th Sept, 15th Dec, 15th March | Before filing return (usually by 31st July) |
| Applicability | Mandatory if tax liability > ₹10,000 | Voluntary (only if you have tax due after advance tax/TDS) |
| Interest for Non-payment | Yes (Sections 234B and 234C) | Only if return filed late (Section 234A) |
| Calculation Basis | Estimated income | Actual income as per return |
Key Relationship: Self-assessment tax is calculated as:
- (Total tax liability) – (Advance tax paid) – (TDS credited) – (Any other tax credits)
Our calculator helps you estimate your advance tax to minimize the self-assessment tax you’ll need to pay later.
What if my actual income is different from my estimate?
It’s common for actual income to differ from estimates. Here’s how to handle it:
- If Actual Income is Higher:
- You’ll need to pay the balance as self-assessment tax before filing your return
- If the shortfall in advance tax is more than 10% of the actual tax, you’ll pay interest under Section 234B
- Our calculator’s conservative estimates help minimize this risk
- If Actual Income is Lower:
- You’ll get a refund of the excess advance tax paid
- The refund will be processed after you file your return
- You can claim interest on the refund at 0.5% per month (Section 244A)
- Adjusting Future Installments:
- If you realize your estimate was off, you can adjust subsequent installments
- For example, if you paid less in the June installment, you can make up for it in September
- Our calculator lets you test different scenarios
- Revised Estimates:
- It’s better to revise your estimates upward if you expect higher income
- The penalty for overestimation is just a refund (with modest interest), while underestimation leads to interest charges
Pro Tip: If your income is volatile (like business income), consider paying slightly more in earlier installments to create a buffer against potential shortfalls.
Do senior citizens need to pay advance tax?
Senior citizens (aged 60 years and above) have special provisions regarding advance tax:
- Exemption from Advance Tax:
- Senior citizens (60-80 years) not having any income from business or profession are exempt from paying advance tax
- This exemption was introduced to simplify compliance for retired individuals living on pension and interest income
- Super Senior Citizens (80+ years):
- The same exemption applies – no advance tax if no business/professional income
- They also get a higher basic exemption limit (₹5,00,000)
- When Advance Tax Applies:
- If a senior citizen has business or professional income, they must pay advance tax if their liability exceeds ₹10,000
- The calculation method is the same as for other taxpayers
- Our calculator has specific options for senior citizens
- Payment Options:
- Even if exempt from advance tax, senior citizens must pay any tax due as self-assessment tax before filing returns
- They can use Challan 280 with payment type “Self-Assessment Tax” (code 300)
Important Note: The exemption is only from advance tax – not from income tax itself. Senior citizens must still file returns and pay any tax due if their income exceeds the exemption limit.
In our case study 3 above, we showed how a senior citizen with pension and interest income would calculate advance tax (which in that case was required because the tax liability exceeded ₹10,000).
How do I pay advance tax online?
Paying advance tax online is a straightforward process. Here’s a step-by-step guide:
- Visit the Income Tax Portal:
- Go to https://www.incometax.gov.in
- Log in using your PAN, password, and captcha
- Navigate to e-Pay Tax:
- Click on “e-File” > “e-Pay Tax”
- Select “New Payment”
- Fill in the Details:
- Select “Income Tax” as the tax type
- Choose Assessment Year as “2020-21” (for FY 19-20)
- Select “Advance Tax” (100) as the payment type
- Enter your PAN and mobile number
- Enter the advance tax amount as calculated by our tool
- Choose Payment Mode:
- Options: Net banking, debit card, or UPI
- Select your preferred bank
- Complete Payment:
- You’ll be redirected to your bank’s payment gateway
- Complete the authentication (OTP, etc.)
- After successful payment, you’ll receive a success message with a CIN (Challan Identification Number)
- Verify Payment:
- Check your email/SMS for the acknowledgment
- Verify the payment in Form 26AS after 3-5 days
- Save the acknowledgment for your records
Alternative Methods:
- Bank Websites: Many banks (SBI, HDFC, ICICI, etc.) offer advance tax payment through their net banking portals
- Mobile Apps: Some banks and third-party apps (like Paytm) offer advance tax payment options
- Offline: You can also pay at authorized bank branches using Challan 280
Important Tips:
- Always double-check the assessment year (2020-21 for FY 19-20)
- Ensure you select “Advance Tax” (code 100) as the payment type
- Use the exact amount calculated by our tool to avoid shortfalls
- Make separate payments for each installment (don’t combine)
What documents should I keep for advance tax payments?
Proper documentation is crucial for advance tax payments. Maintain the following records:
Essential Documents:
- Challan Counterfoil:
- The receipt you get after making payment (physical or digital)
- Contains CIN (Challan Identification Number), date, amount, and bank details
- Bank Statement:
- Showing the debit entry for advance tax payment
- Useful as secondary proof if challan is lost
- Form 26AS:
- Annual tax statement showing all tax credits (TDS, advance tax, self-assessment tax)
- Verify that your advance tax payments appear here within 3-5 days
- Accessible from the income tax portal
- Payment Acknowledgment:
- Email/SMS confirmation from the income tax department
- Contains payment details and reference number
- Calculation Worksheet:
- Your income estimates and tax calculations
- Print or save the results from our calculator
- Helps justify your payment amounts if questioned
Additional Records to Maintain:
- Income Projections: Documents showing how you estimated your annual income
- Deduction Proofs: Receipts for 80C investments, insurance premiums, etc. (for old regime)
- Previous Year Returns: Helpful for estimating current year income
- Communication with Tax Advisor: If you consulted a professional, keep their advice on record
Organization Tips:
- Create a dedicated folder (physical or digital) for all tax-related documents
- Name digital files clearly (e.g., “AdvanceTax_Q1_FY19-20.pdf”)
- Maintain a spreadsheet tracking:
- Payment dates
- Amounts paid
- Challan numbers
- Bank references
- Verify all payments in Form 26AS before filing your return
Retention Period: Keep these records for at least 6 years from the end of the relevant assessment year (until March 2027 for FY 19-20), as the Income Tax Department can reopen assessments within this period under certain circumstances.