How is advance tax calculated and paid?

Ans. Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:

a) In case of all the assessees (other than the eligible assessees as referred to in section 44AD and 44ADA):

i) Atleast to 15 per cent – On or before 15th June

ii) Atleast to 45 per cent – On or before 15th September

iii) Atleast to 75 per cent – On or before 15th December​

iv) Atleast to 100 per cent –On or before 15th March

b) In case of eligible assessee as referred to in section 44AD and 44ADA:

100 per cent – On or before 15th March

Note: Any tax paid on or before 31st day of March shall also be treated as advance tax paid during the same financial year.

The deposit of advance tax is made through challan ITNS 280 by ticking the relevant column, i.e., advance tax.