Advance Tax Calculator AY 2019-20 for Individual
Module A: Introduction & Importance of Advance Tax Calculator AY 2019-20
The Advance Tax Calculator for Assessment Year 2019-20 is a crucial financial tool designed to help individual taxpayers estimate and plan their tax payments in advance. Under Section 208 of the Income Tax Act, 1961, any taxpayer whose estimated tax liability for the financial year exceeds ₹10,000 is required to pay advance tax in installments rather than as a lump sum at year-end.
This calculator becomes particularly important because:
- Avoiding Interest Penalties: Late or non-payment of advance tax attracts interest under Section 234B (1% per month) and Section 234C (1% for each deferment period)
- Cash Flow Management: Helps individuals budget their tax payments throughout the year rather than facing a large payment at year-end
- Compliance Requirement: Mandatory for salaried individuals with significant other income (interest, capital gains, freelance income etc.)
- Financial Planning: Provides clarity on tax liability early in the financial year, allowing for better investment decisions
Module B: How to Use This Advance Tax Calculator
Follow these step-by-step instructions to accurately calculate your advance tax liability:
- Enter Total Estimated Income: Include all sources of income – salary, business/profession, house property, capital gains, and other sources. For AY 2019-20, this would be your estimated income for FY 2018-19.
- Select Age Group: Choose your age category as tax slabs vary:
- Below 60 years (standard tax rates apply)
- 60 to 80 years (higher basic exemption limit)
- Above 80 years (highest basic exemption limit)
- Enter Deductions: Input your eligible deductions under Section 80C (max ₹1,50,000), 80D (medical insurance), 80G (donations), etc. The calculator automatically applies the standard deduction of ₹40,000 introduced in Budget 2018.
- HRA Exemption: Enter your House Rent Allowance details if applicable. The calculator will compute the least of:
- Actual HRA received
- 50% of salary (metro) or 40% (non-metro)
- Rent paid minus 10% of salary
- Residential Status: Select whether you’re a Resident Indian or NRI, as tax treatment differs for certain income types.
- Other Income: Include interest income, capital gains, or any other income not covered above.
- Calculate: Click the “Calculate Advance Tax” button to get your results.
Module C: Formula & Methodology Behind the Calculator
The advance tax calculation follows these precise steps:
1. Gross Total Income Calculation
Gross Total Income = (Salary Income) + (House Property Income) + (Business/Profession Income) + (Capital Gains) + (Other Sources)
2. Deductions Application
Taxable Income = Gross Total Income – (Standard Deduction ₹40,000) – (Section 80C Deductions) – (Other Chapter VI-A Deductions) – (HRA Exemption)
3. Tax Calculation Based on Slabs (AY 2019-20)
| Income Range (₹) | Below 60 years | 60 to 80 years | Above 80 years |
|---|---|---|---|
| Up to 2,50,000 | Nil | Nil | 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% | 30% | 30% |
Tax = (Income × Applicable Rate) + (Surcharge if applicable) + (Health & Education Cess 4%)
4. Surcharge Rules (AY 2019-20)
- 10% surcharge if total income exceeds ₹50 lakh
- 15% surcharge if total income exceeds ₹1 crore
- Marginal relief available to reduce surcharge impact
5. Advance Tax Calculation
Advance Tax = (Total Tax Liability × 15%) – TDS/TCS already paid
Payable in installments:
| Installment | Due Date | Percentage of Total Tax |
|---|---|---|
| 1st Installment | 15 June | 15% |
| 2nd Installment | 15 September | 45% |
| 3rd Installment | 15 December | 75% |
| 4th Installment | 15 March | 100% |
Module D: Real-World Examples
Case Study 1: Salaried Individual (Below 60) with Additional Income
Profile: Rahul, 35, Software Engineer in Bangalore
Income Details:
- Salary Income: ₹12,00,000
- Interest Income: ₹50,000
- Section 80C: ₹1,50,000 (PPF, LIC)
- HRA: ₹3,00,000 (Actual rent paid ₹2,40,000)
- Standard Deduction: ₹40,000
Calculation:
- Gross Income: ₹12,50,000
- Deductions: ₹5,40,000 (HRA ₹2,40,000 + 80C ₹1,50,000 + Standard ₹1,50,000)
- Taxable Income: ₹7,10,000
- Tax: ₹62,600 (₹2,50,000 Nil + ₹2,50,000 @5% + ₹2,10,000 @20%) + 4% cess
- Advance Tax: ₹9,390 (15% of total tax)
Case Study 2: Senior Citizen with Pension and FD Interest
Profile: Smt. Lakshmi, 68, Retired Teacher
Income Details:
- Pension: ₹6,00,000
- FD Interest: ₹2,00,000
- Section 80C: ₹1,00,000
- Medical Insurance (80D): ₹30,000
- Standard Deduction: ₹40,000
Calculation:
- Gross Income: ₹8,00,000
- Deductions: ₹1,70,000
- Taxable Income: ₹6,30,000
- Tax: ₹38,400 (₹3,00,000 Nil + ₹3,00,000 @20% + ₹30,000 @20%) + 4% cess
- Advance Tax: ₹5,760 (15% of total tax)
Case Study 3: NRI with Rental and Capital Gains
Profile: Amit, 42, NRI working in Dubai with Indian properties
Income Details:
- Rental Income (India): ₹4,80,000
- Long-term Capital Gains: ₹3,00,000 (with indexation)
- Interest Income: ₹1,20,000
- Section 80C: ₹1,50,000
Calculation:
- Gross Income: ₹9,00,000
- Deductions: ₹1,50,000
- Taxable Income: ₹7,50,000
- Tax: ₹78,000 (₹2,50,000 Nil + ₹2,50,000 @5% + ₹2,50,000 @20%) + 20% on LTCG + 4% cess
- Advance Tax: ₹11,700 (15% of total tax)
Module E: Data & Statistics
Comparison of Tax Slabs: AY 2018-19 vs AY 2019-20
| Particulars | AY 2018-19 | AY 2019-20 | Change |
|---|---|---|---|
| Basic Exemption Limit | ₹2,50,000 | ₹2,50,000 | No change |
| Standard Deduction | ₹40,000 (introduced) | ₹40,000 | No change |
| 80C Limit | ₹1,50,000 | ₹1,50,000 | No change |
| Health & Education Cess | 3% | 4% | +1% increase |
| LTCG Tax (Equity) | Exempt | 10% above ₹1 lakh | New tax introduced |
| Surcharge (₹50L-₹1Cr) | 10% | 10% | No change |
| Surcharge (Above ₹1Cr) | 15% | 15% | No change |
Advance Tax Collection Statistics (FY 2018-19)
| Taxpayer Category | Total Tax Collected (₹ Cr) | Advance Tax (%) | TDS (%) | Self-Assessment (%) |
|---|---|---|---|---|
| Individuals (Salaried) | 1,25,432 | 12% | 78% | 10% |
| Individuals (Business) | 98,765 | 65% | 25% | 10% |
| HUFs | 12,345 | 55% | 35% | 10% |
| Senior Citizens | 8,765 | 22% | 68% | 10% |
| NRIs | 23,456 | 35% | 55% | 10% |
Source: Income Tax Department Annual Report 2018-19
Module F: Expert Tips for Advance Tax Planning
10 Pro Tips to Optimize Your Advance Tax Payments
- Estimate Accurately: Use your previous year’s income as a base and adjust for known changes (salary hikes, new investments, expected capital gains).
- Consider All Income Sources: Many taxpayers miss including:
- Interest from savings accounts (even if below ₹10,000)
- Dividend income (taxable above ₹10 lakh)
- Rental income from multiple properties
- Freelance or consulting income
- Leverage Deductions Early: Make your 80C investments (PPF, ELSS, etc.) before December to reduce your taxable income for the first three installments.
- Use the 15% Rule Wisely: If your total tax liability is ₹10,000, you don’t need to pay advance tax. Plan your deductions to stay just below this threshold if possible.
- Monitor TDS Credits: Check Form 26AS regularly to account for TDS already deducted from salary, FD interest, etc. This reduces your advance tax liability.
- Set Calendar Reminders: Mark the due dates (15 June, 15 Sept, 15 Dec, 15 Mar) in your calendar with payment links to avoid last-minute rushes.
- Use Challan 280 Correctly: Always select:
- (0021) Income-tax (other than companies) for advance tax
- Assessment Year as 2019-20
- Correct bank for payment
- Maintain Payment Proofs: Save the challan counterfoil (with CIN) and bank acknowledgment for each payment.
- Consider Professional Help: If you have complex income sources (multiple properties, capital gains, foreign income), consult a CA to avoid calculation errors.
- Review Before March: Do a final review in February to account for any year-end bonuses, capital gains from mutual funds, or other last-minute income.
Common Mistakes to Avoid
- Ignoring Capital Gains: Many forget to include profits from stock sales or property transactions.
- Incorrect Age Selection: Senior citizens often select wrong age groups, leading to incorrect tax calculations.
- Missing Surcharge: High-income earners forget to account for the 10-15% surcharge on tax amounts.
- Wrong Assessment Year: Selecting AY 2018-19 instead of 2019-20 when making payments.
- Not Verifying TDS: Assuming TDS will cover advance tax without verifying actual credits.
- Last-Minute Payments: Waiting until the due date can lead to bank server issues and missed deadlines.
Module G: Interactive FAQ
What happens if I don’t pay advance tax on time?
If you fail to pay advance tax or pay less than required, you’ll be liable to pay interest under two sections:
- Section 234B (1% per month): Applies if you’ve paid less than 90% of your total tax liability by 31 March. Calculated from 1 April of the assessment year until the date of payment.
- Section 234C (1% per month): Applies for deferment of advance tax installments:
- 1% on shortfall from 15 June due date until payment
- 1% on shortfall from 15 Sept due date until payment
- 1% on shortfall from 15 Dec due date until payment
Example: If your total tax is ₹1,00,000 and you pay nothing until March, you’ll owe:
- ₹1,000 (1% × ₹1,00,000 × 1 month under 234B)
- ₹3,000 (1% × ₹30,000 × 3 months for June installment)
- ₹2,000 (1% × ₹50,000 × 2 months for Sept installment)
- ₹1,000 (1% × ₹75,000 × 1 month for Dec installment)
- Total interest: ₹7,000 (7% of your tax liability)
How is advance tax different from self-assessment tax?
| Feature | Advance Tax | Self-Assessment Tax |
|---|---|---|
| Timing | Paid in installments during the financial year | Paid after year-end before filing return |
| Purpose | To spread tax payments throughout the year | To cover any remaining tax liability after TDS/advance tax |
| Due Dates | 15 Jun, 15 Sep, 15 Dec, 15 Mar | Before filing return (usually 31 July) |
| Applicability | Mandatory if tax liability > ₹10,000 | Voluntary (if tax remains after other payments) |
| Interest for Non-payment | Yes (Sections 234B & 234C) | Only if return filed late (Section 234A) |
| Challan Used | ITNS 280 | ITNS 280 |
| Calculation Basis | Estimated current year income | Actual income after year-end |
Key Takeaway: Advance tax is about paying as you earn during the year, while self-assessment tax is about settling any remaining balance when you file your return. Most taxpayers will need to pay both.
Can I revise my advance tax payments if my income changes?
Yes, you can and should revise your advance tax payments if your income estimates change significantly. Here’s how to handle different scenarios:
If Your Income Increases:
- Recalculate your estimated tax liability with the new income figures
- Pay the additional amount in the next installment due date
- No penalty will apply as long as you pay at least:
- 15% by 15 June
- 45% by 15 September
- 75% by 15 December
- 100% by 15 March
If Your Income Decreases:
- You can pay less in subsequent installments
- No refund is available for overpaid advance tax until you file your return
- The excess will be refunded when you file your ITR
Special Cases:
- Capital Gains: If you sell property/shares, calculate the tax and pay in the next installment. Use Form 280 with “Capital Gains” as the payment type.
- Bonus Income: If you receive an unexpected bonus, include it in your next advance tax calculation.
- Job Loss: If you lose your job, you can stop advance tax payments and claim refund when filing.
Pro Tip: The Income Tax Department’s e-filing portal allows you to view your advance tax payment history and make additional payments if needed.
What are the advance tax rules for senior citizens?
Senior citizens (aged 60 and above) have special provisions for advance tax:
Key Rules for AY 2019-20:
- Higher Basic Exemption:
- 60-80 years: ₹3,00,000 (vs ₹2,50,000 for others)
- Above 80 years: ₹5,00,000
- No Advance Tax for Pension Income:
- Senior citizens not having any income from business/profession are exempt from paying advance tax (Section 207)
- This exemption applies only if their tax liability after TDS is less than ₹10,000
- Interest Income Considerations:
- Interest from FDs, savings accounts is fully taxable
- Banks deduct TDS at 10% if interest exceeds ₹10,000 (₹50,000 for senior citizens)
- Senior citizens can submit Form 15H to avoid TDS if total income is below taxable limit
- Medical Deductions:
- Section 80D allows ₹50,000 deduction for medical insurance (vs ₹25,000 for others)
- Additional ₹50,000 for parents’ medical insurance if they’re also senior citizens
- Reverse Mortgage:
- Income from reverse mortgage is exempt from tax
- No advance tax required on this income
Practical Example:
Mr. Sharma (68) has:
- Pension: ₹4,80,000
- FD Interest: ₹1,50,000
- Medical Insurance: ₹30,000 (self) + ₹30,000 (spouse)
Calculation:
- Gross Income: ₹6,30,000
- Deductions: ₹60,000 (80D) + ₹40,000 (standard)
- Taxable Income: ₹5,30,000
- Tax: ₹31,800 (₹3,00,000 Nil + ₹2,30,000 @20%) + 4% cess
- Advance Tax: Not required as he has no business income
Important Note: This exemption doesn’t apply if the senior citizen has business income. In that case, normal advance tax rules apply.
How do I pay advance tax online?
Follow this step-by-step guide to pay advance tax online:
Step 1: Calculate Your Tax
- Use this calculator to determine your advance tax amount
- Check Form 26AS for TDS already deducted
- Subtract TDS from total tax to find net advance tax payable
Step 2: Visit the Tax Payment Portal
- Go to: NSDL Tax Payment Website
- Or use your bank’s net banking tax payment section
Step 3: Fill Challan 280
- Select “(0021) Income-tax (other than companies)”
- Enter PAN and Assessment Year (2019-20)
- Select “Advance Tax” as payment type (code 100)
- Enter your address and email
- Select your bank for payment
Step 4: Make Payment
- You’ll be redirected to your bank’s payment gateway
- Complete the payment using net banking/debit card
- Save the acknowledgment (contains CIN – Challan Identification Number)
Step 5: Verify Payment
- Check Form 26AS after 3-5 days to confirm credit
- The entry should show under “Advance Tax” section
- Verify the CIN matches your acknowledgment
Alternative Methods:
- Mobile Apps: Use your bank’s mobile app (most major banks support tax payments)
- Offline: Visit your bank branch with a filled Challan 280
- Through CA: Your chartered accountant can make the payment on your behalf
Common Issues & Solutions:
| Issue | Solution |
|---|---|
| Payment fails at bank | Try a different bank or payment method. Clear browser cache. |
| Wrong assessment year selected | You’ll need to pay again with correct AY. The wrong payment will be adjusted when filing ITR. |
| CIN not showing in 26AS | Wait 5-7 days. If still missing, contact your bank with payment proof. |
| Entered wrong PAN | This cannot be corrected. You’ll need to pay again with correct PAN. |
| Overpayment | The excess will be refunded when you file your ITR. |
What documents should I keep for advance tax payments?
Maintaining proper documentation is crucial for advance tax payments. Here’s a comprehensive checklist:
Essential Documents to Preserve:
- Challan Counterfoil:
- The acknowledgment receipt with CIN (Challan Identification Number)
- Contains: PAN, Assessment Year, Payment Date, Bank Name, Amount
- Format: Digital (PDF) or physical printout
- Bank Statement:
- Showing the debit entry for tax payment
- Should match the amount in your challan
- Form 26AS:
- Annual tax statement showing all tax credits
- Verify advance tax entries appear here
- Download from: Income Tax e-Filing Portal
- Income Estimation Worksheet:
- Your calculations showing how you arrived at the advance tax amount
- Include: Income sources, deductions, tax computation
- TDS Certificates:
- Form 16 (for salary income)
- Form 16A (for other TDS like FD interest)
- Form 16B (for property sales)
- Investment Proofs:
- For deductions claimed (80C, 80D, etc.)
- PPF passbook, insurance premium receipts, etc.
- Capital Gains Documentation:
- If paying tax on capital gains, keep:
- Purchase deed (for property)
- Sale deed
- Brokerage statements (for shares)
- Indexation calculations
- If paying tax on capital gains, keep:
Organization Tips:
- Digital Folder: Create a folder named “AY 2019-20 Advance Tax” with subfolders for each installment date
- Naming Convention: Use format “AdvanceTax_15Jun2018_CIN12345.pdf”
- Backup: Store copies in cloud storage (Google Drive, Dropbox) and physical backup
- Spreadsheet Tracker: Maintain a simple Excel sheet tracking:
- Payment date
- Amount
- CIN
- Bank used
- Installment number
Retention Period:
Keep these documents for at least 8 years from the end of the assessment year (until AY 2027-28 for AY 2019-20) as the Income Tax Department can reopen cases up to 6 years old in certain situations.
Red Flags in Documentation:
- Mismatch between challan amount and bank statement
- Missing CIN in Form 26AS
- Different PAN on challan vs your actual PAN
- Payments made after due dates
- No proof for deductions claimed in your calculation
Are there any exemptions from paying advance tax?
Yes, certain categories of taxpayers are exempt from paying advance tax. Here are the complete details:
Complete Exemption (No Advance Tax Required):
- Senior Citizens (No Business Income):
- Age 60 or above
- Must NOT have any income from business or profession
- Exemption under Section 207
- Still need to pay self-assessment tax if liability exists
- Tax Liability Below ₹10,000:
- If your total tax liability after TDS is less than ₹10,000
- Applies to all taxpayers regardless of age
Partial Exemptions/Special Cases:
- Presumptive Taxation Scheme (Section 44AD):
- For businesses with turnover ≤ ₹2 crore
- Can pay 100% of advance tax by 15 March (instead of installments)
- Tax calculated at 8% of turnover (6% for digital transactions)
- Presumptive Scheme for Professionals (Section 44ADA):
- For professionals with receipts ≤ ₹50 lakh
- Tax calculated at 50% of receipts
- Same 15 March deadline for full payment
- Capital Gains:
- If you earn capital gains after 15 December, you can pay the entire advance tax by 15 March
- Must be from transfer of assets (property, shares, etc.)
- New Businesses:
- First year of business operation
- Can pay 100% by 15 March instead of installments
Important Notes on Exemptions:
- Exemptions don’t mean no tax – you still owe the tax, just not in advance
- You must pay self-assessment tax before filing return if liability exists
- Exemptions don’t apply to TDS – that’s still deducted at source
- If you qualify for exemption but pay advance tax anyway, you’ll get a refund when filing ITR
Documentation for Exemption Claims:
If you’re claiming exemption, maintain these documents:
- Age proof (for senior citizens)
- Income proof showing no business income
- For presumptive schemes: Books of account showing turnover/receipts
- Capital gains: Sale/purchase deeds, broker statements
- Form 16/16A showing TDS credits
What If You Wrongly Claim Exemption?
If you claim exemption but don’t qualify:
- Interest under Section 234B (1% per month) will apply
- You may receive a notice from the Income Tax Department
- The department can disallow your exemption claim during assessment
Pro Tip: When in doubt, it’s safer to pay advance tax and claim a refund later than to risk interest penalties for non-payment.