{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/trends\/first-advance-tax-payment\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/trends\/first-advance-tax-payment\/","headline":"First Advance Tax Payment Due on 15th June: What You Need to Know","name":"First Advance Tax Payment Due on 15th June: What You Need to Know","description":"The deadline to pay the first advance tax installment for Financial Year 2025\u201326 is fast approaching. If your estimated tax liability for the year exceeds \u20b910,000, the Income Tax Act requires you to pay taxes in instalments rather than waiting for year-end filing. Advance tax helps the government receive tax collections throughout the year. And...","datePublished":"2025-06-12","dateModified":"2025-06-12","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/#Person","name":"CONVONIX Antony","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/First-Advance-Tax-Payment.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/First-Advance-Tax-Payment.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/trends\/first-advance-tax-payment\/","about":["Trends"],"wordCount":2222,"articleBody":"The deadline to pay the first advance tax installment for Financial Year 2025\u201326 is fast approaching. If your estimated tax liability for the year exceeds \u20b910,000, the Income Tax Act requires you to pay taxes in instalments rather than waiting for year-end filing.Advance tax helps the government receive tax collections throughout the year. And it can help you avoid a large lump-sum outflow later. In this blog, we\u2019ll walk you through who needs to pay advance tax, how much is due by 15th June, and how you can pay it\u2014online or offline. Let\u2019s get started with the basics.What is Advance Tax?Advance tax refers to income tax paid in parts during the financial year, instead of making a single payment at the end. Also known as \u201cpay-as-you-earn\u201d tax, it\u2019s applicable to individuals and businesses whose total tax liability exceeds \u20b910,000 in a financial year.The income on which advance tax is paid can include salary, rent, interest, capital gains, business income, or other taxable earnings.Who Needs to Pay Advance Tax?Advance tax applies to:Salaried individuals with additional income from sources like rent or capital gainsFreelancers and consultantsBusiness owners, including those under the presumptive taxation schemeCompanies and partnership firmsExemption:Resident senior citizens (aged 60 or above) not having income from business or profession are exempt from paying advance tax, even if their tax liability exceeds \u20b910,000.Note: If you’re unsure about your eligibility, it’s best to consult a qualified tax advisor or refer to the Income Tax Department’s official website.Why is it Important to Pay Advance Tax on Time?Paying advance tax on time can benefit you in multiple ways:Avoid interest penalties under Sections 234B (for non-payment) and 234C (for delay) of the Income Tax ActDistribute your tax burden across the year rather than paying a lump sum at filing timeStay compliant with tax regulations and avoid notices for delayed or insufficient paymentsMissing the June 15th deadline may attract interest charges, so it’s important to stay ahead of your obligations.Also Read: Advance Tax Payment in India: Everything You Need to KnowAdvance Tax Due Dates for FY 2025\u201326If your estimated tax liability exceeds \u20b910,000 in the financial year, you\u2019ll need to pay advance tax in four instalments. Here\u2019s the schedule prescribed by the Income Tax Department:Due DateMinimum Advance Tax Payable15th June 2025At least 15% of total liability15th September 2025At least 45% of total liability (cumulative)15th December 2025At least 75% of total liability (cumulative)15th March 2026100% of total liability (final installment)Quick Tip: These are cumulative targets. If you underpay in earlier quarters, you can make up for it in the next one\u2014but interest may apply.What if You Miss the 15th June Deadline?Missing the first installment doesn’t go unnoticed. Here\u2019s what could happen:Interest under Section 234C: You may be charged interest for shortfall in the required 15% installment.Higher burden later: Future instalments will need to cover the missed portion, increasing your cash outflow in one go.Reduced tax planning flexibility: Timely payments let you better plan deductions and cash flows.Quick Tip: Avoid missing deadlines by setting calendar reminders or automating alerts via banking or tax platforms.How to Calculate Your First Advance Tax InstallmentHere\u2019s a simplified process to estimate how much you need to pay by 15th June:1. Estimate your total income for FY 2025\u201326, including:SalaryInterest (FDs, savings, etc.)Rental incomeBusiness or professional incomeCapital gains (if any)2. Subtract eligible deductions, such as underSection 80CSection 80DStandard DeductionsYou will get your taxable income3. Apply the applicable tax slab rates for individuals or businesses on your taxable income.4. Deduct TDS (if any) already deducted by your employer, bank, or other sources.5. If net payable tax exceeds \u20b910,000, calculate 15% of that amount as your first advance tax installment.Example: First Advance Tax Installment CalculationSuppose Mr. Rajesh has the following estimated details for FY 2025\u201326:Gross total income (e.g., salary, interest, professional fees) = \u20b9 8,10,000Add Interest from fixed deposits = \u20b9 10,000Total income = \u20b9 8,20,000Less Deduction under Section 80D (health insurance premium): \u20b9 77,000Net taxable income = \u20b9 7,43,000Let\u2019s calculate his tax liability based on the old tax regime:1. Income tax on \u20b9 7,43,000 (old regime slabs):\u20b9 0 \u2013 2,50,000: 0% \u21d2 \u20b9 0\u20b9 2,50,001 \u2013 5,00,000: 5% \u21d2 \u20b9 12,500\u20b9 5,00,001 \u2013 7,43,000: 20% \u21d2 \u20b9 48,600Total income tax: \u20b9 61,1002. Add health & education cess (4%):4% of \u20b9 61,100 = \u20b9 2,444Total tax liability: \u20b9 63,5443. First advance tax installment (15%) due by 15 June 2025:15% \u00d7 \u20b9 63,544 = \u20b9 9,532Note: The example above is for illustration only. For precise calculations, consider using the official Income Tax Department calculator or consulting a tax professional.How to Pay Advance Tax OnlineYou can pay your advance tax online through the official e-filing portal. Here’s how:Step 1. Visit https:\/\/www.incometax.gov.inStep 2. Go to \u2018e-Pay Tax\u2019 under the ‘Quick Links’ section.Step 3. Enter your PAN and Mobile number. Enter the OTP received on the registered mobile number.Step 4. Select the box labeled \u2018Income Tax\u2019.Step 5. Enter all the tax-related information and then click on \u2018Continue\u2019.Step 6. Choose your preferred mode of payment (Net banking, debit card, UPI, etc.)Step 7. Preview the challan to re-verify the details. You can also edit details if required, else, you can confirm the payment.Step 7. Save the payment receipt (which has the BSR code and challan serial number) for your records.Quick Tip: Always double-check the assessment year and PAN details before submitting the payment.How to Pay Advance Tax Offline (at a Bank Branch)Prefer paying your taxes the traditional way? Here’s how to do it offline:Visit an authorised bank branch (most private and public sector banks are authorised to accept direct tax payments).Ask for the Challan from the counter.Fill in the details carefully:PANAssessment Year (2026\u201327)Type of payment: Advance Tax (code 100)Submit the filled form along with the tax amount via cash, cheque, or demand draft.The bank will give you a stamped counterfoil as acknowledgment of payment. Keep it safely for your records or future reference.Quick Tip: Check if your branch accepts tax payments\u2014some may only process them on specific days or timings.Documents You May Need for Advance Tax PaymentWhether you\u2019re paying online or offline, keep the following handy:PAN cardEstimated income and deduction detailsBank account with internet banking or UPI access (for online payment)Form 26AS (optional, to check TDS already deducted)Challan 280 (for offline payment)Things to Keep in Mind before Paying Your First Advance Tax InstallmentA few quick checks can make the process easier:Ensure your PAN is active and linked to AadhaarChoose the correct assessment year: FY 2025\u201326 = AY 2026\u201327Avoid underestimation\u2014it may lead to penalties laterKeep proof of payment (challan or transaction ID) for ITR filingConsider using the Income Tax Department\u2019s official calculator for better estimatesWrapping Up!Paying your first advance tax installment by 15th June 2025 not only helps you stay on the right side of the tax authorities but also reduces the financial burden later in the year. Whether you\u2019re a salaried individual with side income, a freelancer, or a business owner, understanding how advance tax works can help you plan your finances better. This blog is intended to help you understand the process\u2014but for specific tax guidance, always consult a qualified tax advisor.Share This:"}