Advance tax

We have different sources of income like salary, income from saving bank, fixed deposits, dividends from stocks etc for which we pay income taxes as per the slab rates we fall in.
There are provisions like TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) which deducts some percentage of amount from salary, interest etc and deposit the same to Income tax department which gets reflected in our Form 26AS and AIS.
Income tax department expects tax payer to estimate his/her tax liabilities in every quarter as per the table below and pay advance tax if the tax liability is Rs. 10,000 or more.

So by 15th of June, you estimate the total tax you are liable to pay considering the TDS, TCS deducted and check if 15% of the total tax liability is already paid, if not and if it exceeds Rs. 10,000 then we should go ahead and pay advance tax.
When we dont pay taxes as per the above table, there are two interests that get charged.
- Section 234B - if 90% of the total tax liability is not paid by 31st Mar, interest of 1% per month from April for the unpaid amount, until it is paid.
- Section 234C - if advance tax paid in each quarter is less than the percentage mentioned in the table,1% interest per month for 3 months to be paid for every quarter where we failed to pay as per the above table. say for eg. for Jun instead of 15% we paid only 10% and the balance tax to be paid in that quarter is above Rs. 10,000, then 1% interest is charged for 3 months for the unpaid amount of that quarter.
It is better to remember to check if we have to pay advance tax by inputting our details in any of the calculators below to find our tax liability and if we need to pay the advance tax.
Also if there are any income events like dividend payments, capital gains due to selling of stocks / mutual funds / house etc, we might have to re-check our tax liabilities around (15th Jun,Sep,Dec and Mar) once again to check if we have to pay the advance tax.