First Installment of Advance Tax (Q1)

Under Section 208 of the Income Tax Act, if your estimated tax liability for the year exceeds ₹10,000 (after subtracting any Tax Deducted at Source/TCS), you are legally required to pay your taxes in advance across four installments.

For the first installment due on June 15th, you must pay at least 15% of your total estimated advance tax for the financial year.

Important Considerations:

1. Penalties for Shortfall: Failing to pay this installment, or paying less than the required 15%, attracts penal interest under Section 234C at a flat rate of 1% per month for three months on the short amount. 2. Presumptive Taxation Exception: If you run a small business or profession and have formally opted for the Presumptive Taxation Scheme under Section 44AD or Section 44ADA, you are completely exempt from this June 15th deadline. You only need to pay 100% of your advance tax by March 15th. 3. Salary & Capital Gains: Salaried employees usually have TDS deducted by their employers. However, if you have additional income not reported to your employer (like substantial bank interest, rent, or recent capital gains from mutual funds/stocks), you must calculate and pay advance tax on that non-salary income.