Advance Tax Payment Online: A Simple Guide for Individuals and Businesses

Explore how to make advance tax payments online in India in 2025. Learn who needs to pay, the methods, and the benefits of timely online tax payments with step-by-step instructions.
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Advance Tax Payment online
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4 min
27-December-2025

When it comes to taxes, waiting until the end of the financial year can lead to a heavy burden. That’s where advance tax comes in. It allows you to pay your tax dues in parts, throughout the year—making it easier on your wallet and ensuring you stay compliant.

In India, if your total tax liability exceeds Rs. 10,000 in a financial year (after TDS), you are expected to pay advance tax. Whether you’re a salaried employee with additional income, a freelancer, a business owner, or an investor, paying advance tax on time is not just a legal requirement—it is smart financial planning.

Thanks to online platforms, the entire process has become quick, easy, and paperless. Let us break it down.

What is Advance Tax, and Why Does It Matter?

Advance tax is often called the “pay-as-you-earn” system. Instead of paying your income tax as a lump sum at the end of the year, you pay it in installments based on your estimated earnings.

Why it is important:

  • Helps avoid last-minute financial strain.
  • Prevents interest and penalties on late payments.
  • Keeps you compliant with tax laws.
  • Gives you better control over your finances.

Whether you earn from a salary, side hustle, capital gains, rent, or business income—if your tax dues are more than Rs. 10,000, you’re required to pay advance tax.

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Also Read: What is Progressive Tax

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How to Pay Advance Tax Online

Paying advance tax is now as easy as online shopping. Here is a step-by-step guide:

  1. Visit the official e-filing website: Go to https://www.incometax.gov.in
  2. Choose the payment option: Click on ‘e-Pay Tax’ and select ‘Advance Tax’ under payment types.
  3. Enter your details: Provide your PAN, assessment year, and taxpayer category (individual, company, etc.).
  4. Select your bank and payment mode: Choose between net banking, debit card, credit card, or UPI.
  5. Make the payment: You’ll be redirected to your bank’s payment gateway. After successful payment, download the Challan 280 as proof.

Pro Tip: Always double-check your PAN and assessment year before submitting. Any mismatch can cause processing delays or errors.

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Who Needs to Pay Advance Tax?

You need to pay advance tax if your estimated annual tax liability exceeds Rs. 10,000 (after adjusting TDS). Here’s who should take note:

  • Salaried individuals with income from sources like rent, capital gains, or freelance work.
  • Self-employed professionals (doctors, lawyers, freelancers, consultants).
  • Businesses—whether small proprietorships or large corporations.
  • Investors earning from dividends, F&O trading, interest, or property sales.

By paying in installments (June, September, December, March), you reduce the pressure of a bulk payment and avoid hefty interest charges.

Need help forecasting your tax or interest earnings?Use our FD calculator to estimate returns and plan your finances better.

What Happens If You Miss the Advance Tax Deadline?

Missing your advance tax deadlines can lead to interest charges under Section 234B and 234C of the Income Tax Act:

  • Section 234B: If you pay less than 90% of your total tax liability by year-end, you’ll be charged 1% interest per month on the shortfall.
  • Section 234C: If you miss the due dates for quarterly installments, you’ll pay 1% interest for each delayed month.

These interest penalties can snowball quickly. Timely payments help you avoid them while giving you peace of mind.

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Benefits of Paying Advance Tax on Time

  • No last-minute surprises: Break your tax burden into manageable parts.
  • Avoid interest and penalties: Stay compliant with tax laws.
  • Better financial planning: Helps you manage cash flows across the year.
  • Smoother refund process: Timely tax records simplify return filing and refunds.

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Also Read: Income Tax Exemptions for Salaried Individuals

Final Thoughts

Advance tax is not just a legal requirement—it is a proactive way to take control of your financial journey. Whether you’re earning from a job, business, or investments, paying advance tax online is simple, quick, and beneficial.

Stay ahead of deadlines, keep track of your income sources, and ensure accurate estimates to avoid penalties. And if you’re looking to balance tax outflows with smart investments, consider options like Fixed Deposits for secure, steady growth.

Start planning today! Check FD eligibility and grow your savings by up to 7.30% p.a. alongside managing your taxes effectively.

Calculate your expected investment returns with the help of our investment calculators.

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Frequently asked questions

When should I pay advance tax?
Advance tax in India is paid in installments based on estimated income for the year. The payment deadlines are typically in June, September, December, and March. These due dates depend on the total tax liability and the type of taxpayer. Ensure payments are made on time to avoid penalties or interest.

Where can I view my advance tax payment?
You can view your advance tax payment details on the Income Tax Department’s official e-filing portal. After logging in with your PAN and password, go to the ‘Tax Paid’ section. Here, you can access and download the challan for your payments. It is also possible to track payments via your bank’s portal.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or referhttps://www.bajajfinserv.in/fixed-deposit-archivesThe company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

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