How to Make Advance Tax Payment Online in India (FY 2024-25)

Rashmita Choudhary
6 hours ago
15 min read

This advance tax guide introduces the concept of advance tax, a crucial element for both taxpayers and the Indian government. Understanding how to make advance tax payment is important because it ensures a steady flow of revenue for the government and helps taxpayers manage their financial obligations throughout the year, avoiding a large payment at year-end. This guide for Financial Year (FY) 2024-25, corresponding to Assessment Year (AY) 2025-26, comprehensively covers what advance tax is, who needs to pay it, the payment deadlines, and the online payment process. TaxBuddy aims to simplify tax compliance, and this article will clearly explain the steps for paying advance tax online.

Properly understanding your income tax obligations related to Advance Tax is a key part of financial planning for any Taxpayer in India.

What is Advance Tax? The "Pay-As-You-Earn" System

What is advance tax? It's a system where individuals and businesses pay their Income Tax in parts during the Financial Year, instead of a single lump sum at the end. The advance tax meaning is rooted in the "pay-as-you-earn" principle. This method helps the government receive a consistent stream of Government Revenue which aids in budgeting and expenditure. For taxpayers, this approach lessens the burden of a large Tax Liability at the end of the fiscal year, making tax payment more manageable. Section 208 of the Income Tax Act, 1961, establishes the requirement for advance tax payment. Think of it like pre-paying for a service in instalments, so the final bill isn't a shock.

Who is Liable to Pay Advance Tax in FY 2024-25?

Determining who should pay advance tax depends on an individual's or entity's total Tax Liability. If a taxpayer's total tax due in a financial year is ₹10,000 or more after deducting Tax Deducted at Source (TDS), then advance tax applicability arises. This advance tax threshold applies to various categories of taxpayers, including salaried individuals with other income, freelancers, professionals, and businesses. Even income from Capital Gains or Interest Income can trigger this liability. We will look into specific scenarios, like advance tax for salaried individuals and advance tax for business operations. Understanding these rules is key to figuring out your obligations based on the current income tax slabs.

Salaried Individuals with Other Income

Advance tax for employees becomes relevant when their employer's TDS on Salary does not cover the tax due on other incomes. Many salaried individuals earn Rental Income, Interest Income, Capital Gains, or Dividends. If the total tax liability from all income sources, after TDS, surpasses ₹10,000, these individuals must pay advance tax on salary and other income.

Freelancers, Professionals, and Business Owners

Advance tax for freelancers, professionals, and business owners is a common requirement because their Freelance Income, Professional Income, or Business Income usually does not have TDS deducted at the source, or the TDS is not sufficient. These taxpayers typically need to estimate their annual Profit and income, then calculate and pay advance tax if their total tax liability is ₹10,000 or more.

Individuals Opting for Presumptive Taxation (Section 44AD & 44ADA)

The advance tax presumptive scheme offers a simpler path for certain individuals. Taxpayers who opt for Presumptive Taxation under Section 44AD (for businesses) or Section 44ADA (for professionals) have a special provision regarding advance tax. They can pay their entire advance tax liability in a single instalment by March 15th of the financial year. The advance tax 44AD and advance tax 44ADA due date makes compliance straightforward for them, though payment can also be made by March 31st.

Companies and LLPs

Advance tax for companies and Limited Liability Partnerships (LLPs) is a standard obligation. These entities must estimate their income and pay advance tax in instalments according to the prescribed due dates if their tax liability meets the threshold.

Non-Resident Indians (NRIs) with Income in India

Advance tax for NRIs applies if they earn Taxable Income in India that results in a tax liability of ₹10,000 or more after any applicable TDS. NRIs must also follow the advance tax payment schedule for such income.

Who is Exempt from Paying Advance Tax?

There are specific advance tax exemption rules detailed in the Income Tax Act. Primarily, resident Senior Citizens (individuals aged 60 years or more) who do not have any income from a Business Income or Profession are not liable to pay advance tax. This exemption for senior citizens is covered under Section 207 of the Income Tax Act. Additionally, any taxpayer who is not liable for advance tax if their total estimated tax liability for the year, after deducting TDS, is less than ₹10,000.

Here's a quick rundown of exemptions:

A resident senior citizen (60 years or older) not having income from business or profession.
Any taxpayer whose net tax liability (after TDS) is less than ₹10,000.

Advance Tax Payment Due Dates & Instalment Percentages for FY 2024-25

Knowing the advance tax due dates FY 2024-25is critical for taxpayers to manage their advance tax instalments correctly. For the FY 2024-25 (which corresponds to AY 2025-26), both individual and corporate taxpayers (not opting for the presumptive scheme) must follow a specific advance tax payment schedule. The Income Tax Department sets these dates, and adherence is important to avoid interest. The last date for advance tax is March 15, 2025, by which 100% of the liability should be paid.

Here is the schedule for taxpayers (other than those covered under Section 44AD and Section 44ADA):

Due Date (FY 2024-25)	Percentage of Advance Tax Payable (Cumulative)
On or before June 15, 2024	At least 15% of total advance tax
On or before Sep 15, 2024	At least 45% of total advance tax
On or before Dec 15, 2024	At least 75% of total advance tax
On or before Mar 15, 2025	100% of total advance tax

Note for Presumptive Scheme (Sec 44AD/44ADA): Taxpayers opting for these sections must pay 100% of their advance tax by March 15, 2025.

Step-by-Step: How to Pay Advance Tax Online New Income Tax Portal

You can easilypay advance tax online through the Income Tax Portal, specifically using its e-Pay Tax facility. This is the primary and recommended method for making advance tax payments. These advance tax payment steps, updated as of June 2025, will guide you. The older Challan 280 online process is now integrated into this new system. When paying, you will need to select the correct Assessment Year (2025-26) for income earned in FY 2024-25 and choose the Type of Payment (Advance Tax - Code 100). Payment can be made via Net Banking, Debit Card, UPI, or other Payment Gateway options, and you will receive a Challan Receipt with a BSR Code and Challan Serial Number.

Pre-requisites for Online Payment

Before starting your requirements for online tax payment, ensure you have these things ready:

Your PAN card.
An active mobile number linked to your PAN for receiving an OTP.
Access to Net Banking, or details for your Debit Card, Credit Card, or UPI for payment.

Step 1: Visit the Income Tax e-Filing Portal

To initiate the process, go to the official Income Tax e-Filing portal at incometax.gov.in. On the homepage, locate and click on the "e-Pay Tax" option. This section allows you to make various tax payments directly.

Step 2: Enter PAN and Mobile Number for OTP Verification

Next, you need to enter your PAN and then re-confirm it. After that, input your mobile number. You will receive an OTP (One-Time Password) on this mobile number. Enter the OTP to proceed with the verification.

Step 3: Select Payment Category - Income Tax

After successful OTP verification, the portal will show different tax payment categories. You should select "Income Tax" from these options and click "Proceed" to continue with your advance tax payment.

Step 4: Select Assessment Year (AY 2025-26) and Type of Payment (Advance Tax - 100)

This is a very important step where you select the Assessment Year (AY) as 2025-26 (this is for income earned during the Financial Year 2024-25). Then, for the Type of Payment, you must choose "Advance Tax (100)". Selecting these correctly ensures your payment is attributed properly.

Step 5: Enter Tax Breakup Details

You will then need to input the amount of tax you are paying in the "Income Tax" field. If you have amounts for Surcharge or Cess, these may auto-calculate based on your income details or you can enter them if they are specific and known.

Step 6: Select Payment Mode

The portal offers several payment mode options. You can choose from Net Banking (available for many banks), Debit Card, Pay at Bank Counter (this option generates a challan to pay offline), RTGS/NEFT, or Payment Gateway (which typically includes UPI and Credit Card options). Select the one that is most convenient for you.

Step 7: Preview and Confirm Payment

Before you proceed to make the payment, the system will show a preview of the challan with all the details you have entered. This is the modern equivalent of the old Challan 280 details. Carefully review all the information. If everything is correct, confirm and proceed to your bank's portal for payment.

Step 8: Complete Payment via Bank's Portal

You will be redirected to your chosen bank's secure payment page. Follow the instructions on your bank's website to complete the payment transaction. This usually involves logging into your net banking or entering card details and authorizing the payment.

Step 9: Download Challan Receipt

After a successful payment, a challan receipt will be generated. This receipt is very important as it contains the BSR Code, Challan Serial Number, date of payment, and the amount paid. You must download this receipt and save it carefully. This Challan Receipt is proof of your tax payment and is essential for filing your Income Tax Return (ITR).

How to Pay Advance Tax Offline?

For individuals who prefer or need to pay advance tax offline, the process involves first generating a challan from the e-Pay Tax portal and then making the advance tax bank payment at an authorized bank. While online payment offers more convenience and speed, this advance tax challan payment method is still available.

Here are the steps for offline payment:

Generate a Challan Reference Number (CRN) from the e-Pay Tax portal: On the payment mode selection screen (Step 6 of the online guide), choose the "Pay at Bank Counter" option. You can select payment via cash (up to a certain limit), cheque, or demand draft. A challan with a CRN will be generated.
Print the generated challan: Take a printout of this challan.
Visit an authorized bank branch: Go to an Authorized Bank Branch that accepts income tax payments.
Make payment: Submit the challan and make the payment using cash, cheque, or a demand draft.
Collect stamped challan receipt: The bank will provide a stamped copy of the challan receipt as proof of payment. Keep this safe.

Consequences of Not Paying Advance Tax or Paying Late

Failing to pay advance tax or making a penalty for not paying advance tax can lead to interest charges under the Income Tax Act. Specifically, interest is levied under Section 234B for default or shortfall in payment of advance tax, and under Section 234C for deferment or short payment of advance tax instalments. This interest on late payment of advance tax is generally calculated at 1% per month or part of a month. Understanding these sections helps in appreciating the need for timely payments. You can always learn more about tax compliance to stay updated.

Interest under Section 234B

Interest under Section 234B is charged if the advance tax you paid is less than 90% of your 'assessed tax' (total tax liability minus TDS), or if you haven't paid any advance tax at all. The interest is 1% per month (or part of a month) on the shortfall amount. This interest calculation starts from April 1st of the Assessment Year and continues until the date your total income is determined or the tax is paid.

Interest under Section 234C

Interest under Section 234C applies when there's a shortfall in paying the specific instalments of advance tax by their respective due dates. For the first three instalments (due June 15, September 15, and December 15), if the cumulative tax paid is less than the required percentage (15%, 45%, and 75% respectively), interest at 1% per month is charged for a period of 3 months on the amount of shortfall. For the last instalment (due March 15), if the tax paid by then is less than 100% of the total advance tax due, interest at 1% is charged for 1 month on the shortfall.

However, there's an exception: No interest under Section 234C is levied if the shortfall in an instalment is due to underestimating income from Capital Gains, Winnings from Lottery, new business income, or dividend income (if not part of estimated income for earlier instalments), provided the taxpayer pays the required tax in the subsequent instalments or by March 31st of the financial year.

What if You Pay Excess Advance Tax? Claiming a Refund

Sometimes, you might find that you have excess advance tax paid more than your actual tax liability for the year. In such cases, the advance tax refund process is straightforward. The excess amount will be refunded to you by the Income Tax Department after you file your Income Tax Return (ITR) and it is processed. If the refund amount is more than 10% of your total tax liability, you may also receive interest on this refund under Section 244A of the Income Tax Act. While the department aims to process refunds quickly, it's good to manage expectations about the exact timelines. You can often check your income tax refund status online.

How to Check Advance Tax Payment Status & Download Challan Receipt

To check advance tax payment status, taxpayers can look at their net banking portal's payment history shortly after making the payment. The payment also reflects in your Form 26AS (Annual Tax Statement) and AIS (Annual Information Statement) after a few days, which provides a consolidated view of all taxes paid. As emphasized earlier, it's crucial to download advance tax challan or the advance tax receipt immediately after a successful transaction via the e-Pay Tax facility on the Income Tax portal. This downloaded Challan Receipt is your primary proof. Always keep your tax payment records safe and organized. While the new IT portal should be the primary source, historically, taxpayers could also verify challan status via the NSDL OLTAS portal, but the integrated system on the new portal is designed to be comprehensive.

Scenario-Based Advance Tax Calculation Examples (FY 2024-25)

Understanding advance tax calculation examples can significantly clarify how this applies to different individuals. These examples use assumed figures and current FY 2024-25 tax slabs for illustration. Clear assumptions are stated for each.

Example 1: Salaried Individual with Interest and Short-Term Capital Gains

Consider Priya, a salaried individual.

Annual Salary: ₹12,00,000
TDS on Salary by Employer: ₹1,10,000
Interest Income from Fixed Deposits: ₹50,000
Short-Term Capital Gains (STCG) on Shares (taxable @15%): ₹1,00,000

Calculation Steps:

1. Calculate Total Income:
- Salary Income: ₹12,00,000
- Income from Other Sources (Interest): ₹50,000
- Short-Term Capital Gains: ₹1,00,000
- Gross Total Income: ₹12,00,000 + ₹50,000 + ₹1,00,000 = ₹13,50,000
Assume No Deductions under Chapter VI-A for simplicity in this example.
Calculate Tax Liability (Old Regime, rates for FY 2024-25, AY 2025-26):
- Tax on STCG @15%: ₹1,00,000 * 15% = ₹15,000
- Tax on remaining income (₹12,50,000):
  - Up to ₹2,50,000: Nil
  - ₹2,50,001 to ₹5,00,000 (₹2,50,000 @ 5%): ₹12,500
  - ₹5,00,001 to ₹10,00,000 (₹5,00,000 @ 20%): ₹1,00,000
  - Above ₹10,00,000 (₹2,50,000 @ 30%): ₹75,000
  - Total tax on other income: ₹12,500 + ₹1,00,000 + ₹75,000 = ₹1,87,500
- Total Tax before Cess: ₹15,000 (on STCG) + ₹1,87,500 = ₹2,02,500
- Health & Education Cess @4%: ₹2,02,500 * 4% = ₹8,100
- Total Tax Liability: ₹2,02,500 + ₹8,100 = ₹2,10,600
Calculate Net Tax Liability:
- Total Tax Liability: ₹2,10,600
- Less: TDS already deducted: ₹1,10,000
- Net Tax Payable: ₹2,10,600 - ₹1,10,000 = ₹1,00,600
Advance Tax Liability: Since ₹1,00,600 is more than ₹10,000, Priya must pay advance tax.
- 1st Instalment (by June 15): 15% of ₹1,00,600 = ₹15,090
- 2nd Instalment (by Sep 15): 45% of ₹1,00,600 = ₹45,270 (less already paid) => ₹30,180
- 3rd Instalment (by Dec 15): 75% of ₹1,00,600 = ₹75,450 (less already paid) => ₹30,180
- 4th Instalment (by Mar 15): 100% of ₹1,00,600 = ₹1,00,600 (less already paid) => ₹25,150

This advance tax for salaried example shows how income beyond salary impacts tax dues. An advance tax capital gains example is also integrated here.

Example 2: Freelancer Opting for Old Tax Regime with 80C Deductions

Raj is a freelance consultant.

Gross Freelance Receipts: ₹18,00,000
Business Expenses: ₹4,00,000
80C Deductions (PPF, ELSS): ₹1,50,000
No TDS deducted on his freelance income.

Calculation Steps:

Calculate Net Taxable Income:
- Profit from Freelance: ₹18,00,000 - ₹4,00,000 = ₹14,00,000
- Less: 80C Deductions: ₹1,50,000 (you can find more details on 80C deductions here)
- Net Taxable Income: ₹14,00,000 - ₹1,50,000 = ₹12,50,000
Calculate Tax Liability (Old Regime, rates for FY 2024-25, AY 2025-26):
- Up to ₹2,50,000: Nil
- ₹2,50,001 to ₹5,00,000 (₹2,50,000 @ 5%): ₹12,500
- ₹5,00,001 to ₹10,00,000 (₹5,00,000 @ 20%): ₹1,00,000
- Above ₹10,00,000 (₹2,50,000 @ 30%): ₹75,000
- Total Tax before Cess: ₹12,500 + ₹1,00,000 + ₹75,000 = ₹1,87,500
- Health & Education Cess @4%: ₹1,87,500 * 4% = ₹7,500
- Total Tax Liability (Advance Tax Payable): ₹1,87,500 + ₹7,500 = ₹1,95,000
Since tax liability ₹1,95,000 is > ₹10,000 and no TDS, Raj pays this entire amount as advance tax.
- 1st Instalment: 15% of ₹1,95,000 = ₹29,250
- 2nd Instalment: 45% of ₹1,95,000 = ₹87,750 (less already paid) => ₹58,500
- 3rd Instalment: 75% of ₹1,95,000 = ₹1,46,250 (less already paid) => ₹58,500
- 4th Instalment: 100% of ₹1,95,000 = ₹1,95,000 (less already paid) => ₹48,750

Example 3: Small Business Owner

Sunita runs a small retail business (not under presumptive scheme).

Estimated Annual Profit from Business: ₹8,00,000
No other income, no TDS.

Calculation Steps:

Net Taxable Income: ₹8,00,000
Calculate Tax Liability (Old Regime, rates for FY 2024-25, AY 2025-26, assuming Sunita is below 60 years):
- Up to ₹2,50,000: Nil
- ₹2,50,001 to ₹5,00,000 (₹2,50,000 @ 5%): ₹12,500
- ₹5,00,001 to ₹8,00,000 (₹3,00,000 @ 20%): ₹60,000
- Total Tax before Cess: ₹12,500 + ₹60,000 = ₹72,500
- Health & Education Cess @4%: ₹72,500 * 4% = ₹2,900
- Total Tax Liability (Advance Tax Payable): ₹72,500 + ₹2,900 = ₹75,400
Since tax liability ₹75,400 is > ₹10,000, Sunita pays this as advance tax.
- 1st Instalment: 15% of ₹75,400 = ₹11,310
- 2nd Instalment: 45% of ₹75,400 = ₹33,930 (less already paid) => ₹22,620
- 3rd Instalment: 75% of ₹75,400 = ₹56,550 (less already paid) => ₹22,620
- 4th Instalment: 100% of ₹75,400 = ₹75,400 (less already paid) => ₹18,850

Common Mistakes to Avoid When Paying Advance Tax & Troubleshooting

Avoiding advance tax mistakes ensures smooth compliance and prevents unnecessary advance tax payment issues. Here are some common errors and tips for troubleshooting advance tax problems:

Selecting incorrect Assessment Year: Always select AY 2025-26 for income earned in FY 2024-25. Using the wrong AY can lead to misclassification of your payment.
Entering incorrect PAN: Double-check your PAN. An incorrect PAN means the tax paid won't be credited to your account.
Choosing wrong type of tax payment: Ensure you select "Advance Tax (Code 100)". Selecting "Self-Assessment Tax (Code 300)" or other codes by mistake will cause problems.
Calculation errors leading to short payment: Carefully calculate your estimated income and tax liability. Short payment can attract interest.
What to do if payment fails but amount deducted: If your bank account is debited but the challan receipt is not generated, don't panic. Wait for some time (usually 24-48 hours) for the bank to update the status. Check your bank statement and the tax portal. If unresolved, contact your bank.
How to use the "Challan Correction" facility: The income tax portal may offer a "Challan Correction" facility for minor errors in the challan, like incorrect AY (within a limited timeframe and for specific fields). Check the portal for current options. If major errors occur, it might be more complex.

If you face persistent issues, it's wise to Contact TaxBuddy experts for assistance.

Advance Tax Payment Checklist

This advance tax checklist can help you stay organized. Using an advance tax to-do list ensures you cover all necessary steps for timely and accurate payment.

Here are key points for your checklist:

Estimate your total annual income from all sources.
Calculate your total tax liability for the financial year.
Deduct any TDS already paid or likely to be paid.
Check if net tax liability exceeds ₹10,000.
Note down the advance tax due dates (June 15, Sep 15, Dec 15, Mar 15).
Gather your PAN, mobile number, and bank/payment details.
Pay advance tax instalments via the official Income Tax portal (e-Pay Tax).
Select the correct Assessment Year (e.g., AY 2025-26 for FY 2024-25 income).
Select the correct payment type ("Advance Tax - Code 100").
Download the challan receipt immediately after payment.
Keep a record of all payment details for ITR filing.

Conclusion: Stay Compliant & Avoid Penalties with Timely Advance Tax Payments

The importance of advance tax payments done correctly and on schedule cannot be overstated for maintaining good advance tax compliance. Timely payment of Advance Tax by a Taxpayer helps in avoiding interest Penalties under sections 234B and 234C of the Income Tax Act. It also ensures a smoother cash flow for the government and makes taxpaying less burdensome for individuals and businesses. This guide from TaxBuddy endeavors to provide all the necessary information for you to manage your advance tax obligations for FY 2024-25 effectively.

Frequently Asked Questions (FAQs) about Advance Tax Payment

1. Can I pay advance tax after the due date?

Ans: Yes, but with interest. Pay by March 31 for it to be treated as advance tax.

2. What if my income changes during the year after paying an installment?

Ans: You can revise subsequent installments.

3. Is advance tax applicable on lottery winnings or capital gains that occur suddenly?

Ans: Yes, pay in remaining installments or by March 31 to avoid Section 234C interest partially.

4. Do I need to submit proof of advance tax payment separately?

Ans: No, but details are required in ITR, and keep the challan receipt.

5. Can advance tax be paid in cash?

Ans: Possible via bank counter after generating challan, but online is preferred.

6. What is Challan 280? Is it still used?

Ans: Challan 280 is the form number for tax payments, now integrated into the e-Pay Tax facility on the new portal.

7. How do I find my BSR code and challan serial number?

Ans: On the downloaded challan receipt.

8. Does my employer pay advance tax on my behalf?

Ans: The employer deducts TDS on salary. You pay advance tax on other incomes if applicable.

9. Can I revise my estimated income for advance tax?

Ans: Yes, adjust in subsequent installments.

10. What if I miss the March 15 deadline completely?

Ans: Pay as Self-Assessment Tax while filing ITR, interest under Section 234B/C will apply.

11. Are NRIs liable for advance tax in India?

Ans: Yes, on income earned/accrued in India if tax liability is greater than ₹10,000.

12. Can I get a refund if I pay more advance tax?

Ans: Yes, claim in ITR.

13. How does advance tax relate to Form 26AS and AIS?

Ans: Use them to verify TDS and estimate income.

14. Is there an advance tax calculator available?

Ans: Yes, the Income Tax Department (ITD) provides one, or you can calculate manually as explained. TaxBuddy might have one.

15. If TDS covers my entire tax liability, do I still need to pay advance tax?

Ans: No, if the net liability after TDS is less than ₹10,000.

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