Quarterly Tax Payments

Quarterly Tax Payments refer to the payment of advance tax in instalments during the financial year instead of paying the entire tax at once at year-end.

This system ensures that tax is paid as income is earned.

1. Who Needs to Pay Quarterly Tax

You are required to pay advance tax if:

• Your total tax liability exceeds ₹10,000 in a financial year
• Applies to:
  
  • Salaried individuals (if TDS is insufficient)
  • Freelancers and professionals
  • Business owners

2. Advance Tax Due Dates

Advance tax is paid in four instalments:

• 15th June → 15% of total tax
• 15th September → 45% of total tax (cumulative)
• 15th December → 75% of total tax (cumulative)
• 15th March → 100% of total tax

3. How It Works

• Estimate your total income for the year
• Calculate total tax liability
• Pay tax in instalments as per due dates

4. Special Case (Presumptive Taxation)

For taxpayers under presumptive taxation (Section 44AD/44ADA):

• Entire advance tax can be paid in one instalment by 15th March

5. Mode of Payment

• Paid using Challan 280
• Online payment through net banking is commonly used

6. Interest for Non-Payment

Failure to pay advance tax on time may attract:

• Interest under Section 234B and 234C
• Even if tax is paid later

7. Common Mistakes

• Not estimating income properly
• Missing instalment deadlines
• Assuming salaried individuals don’t need to pay
• Ignoring interest implications

Practical Insight

Most people think tax is a year-end activity.

It’s not.

If your income doesn’t have sufficient TDS:
👉 you’re expected to pay tax throughout the year

Ignoring this leads to:

• interest
• cash flow issues
• last-minute pressure

How N D Savla & Associates Can Help

At N D Savla & Associates, we help you:

• Estimate advance tax accurately
• Plan instalments to avoid interest
• Ensure correct payment through Challan 280
• Align tax payments with cash flow