How to Pay Advance Income Tax Online in India (FY 2024–25): Complete Guide

Step-by-step guide on how to pay advance income tax online in India. Covers due dates, rules, payment options, interest, and FAQs for FY 2024–25 (AY 2025–26). Stay compliant and avoid penalties.

Paying taxes at the last minute can be stressful and expensive if penalties apply. This is why the Income Tax Department requires many taxpayers to pay advance income tax in installments during the year, instead of waiting until the end.

If you’re unsure whether you need to pay advance tax or confused about how to do it online, this guide will walk you through everything. You’ll learn who is liable, the latest rules and deadlines for FY 2024–25, and the exact steps to pay safely through the government’s portal. By the end, you’ll know how to calculate, pay, and avoid common mistakes.

What is Advance Income Tax and Who Needs to Pay It

Advance income tax is simply income tax paid in parts during the financial year, instead of paying it all at once when filing your return. The goal is to spread tax collection more evenly and reduce the burden of lump-sum payments.

According to Section 208 of the Income Tax Act, any individual or business whose estimated tax liability for the year is ₹10,000 or more after adjusting TDS and TCS must pay advance tax. This applies to salaried employees with additional income (like rent, capital gains, or freelance earnings), business owners, and professionals.

However, there are some important exceptions:

• Senior citizens (aged 60 years or above) who do not earn income from business or profession are not required to pay advance tax.
• Taxpayers under the presumptive taxation scheme (Sections 44AD and 44ADA) have a different rule: they can pay the entire advance tax liability in one installment on or before 15 March.

For detailed information, you can check the official Income Tax Department portal.

Important Rules and Deadlines for FY 2024–25 (AY 2025–26)

Advance tax has to be paid in four installments spread across the year. The percentage of total tax liability to be paid by each date is fixed by law. Here are the due dates for FY 2024–25:

If you miss these dates or pay less than the required amount, interest will apply. The law prescribes interest under Section 234B (for not paying advance tax at all) and Section 234C (for paying less than the required installment). Interest is generally charged at 1% per month or part of a month on the shortfall.

It’s also worth noting that paying in advance does not mean overpaying. If you pay more than your actual tax liability, the excess will be refunded after you file your return. For official updates and any changes in deadlines, always refer to the Income Tax India website.

Preparing Before You Pay: What You’ll Need

Before making an advance income tax payment online, it’s important to gather the right information. Having these details ready will make the process quicker and reduce the chance of mistakes.

1. Permanent Account Number (PAN)

Your PAN is mandatory for all tax payments. Make sure the PAN entered matches the details in your Income Tax profile, or your payment may not get linked correctly.

2. Financial Year and Assessment Year

When paying advance tax, always select the correct Assessment Year (AY). For income earned between 1 April 2024 and 31 March 2025 (Financial Year 2024–25), you must choose AY 2025–26 in the challan.

3. Estimate of Total Income

Prepare an estimate of your total income for the year. Include salary, rent, business income, capital gains, and any other earnings. Subtract eligible deductions (like Section 80C investments) and exemptions before calculating tax liability.

4. Taxes Already Paid

Check your Form 26AS or Annual Information Statement (AIS) on the Income Tax e-filing portal to see how much tax has already been deducted (TDS or TCS). This prevents double payment.

5. Payment Codes and Heads

Advance tax must be paid using Challan ITNS 280. While filling the challan, select:

• Major Head: 0021 (Income Tax – Other than Companies) for individuals, or 0020 (Income Tax – Companies) if applicable
• Minor Head: 100 (Advance Tax)

Entering the wrong head is a common mistake, so double-check before submitting.

6. Mode of Payment

Choose a payment mode that suits you. Options include net banking through authorised banks, debit or credit card, UPI, RTGS/NEFT, or paying at a bank branch. The official e-Pay Tax system supports all these methods.

Step-by-Step Guide: How to Pay Advance Tax Online

Paying advance income tax online has become much simpler with the new e-Filing portal. You can pay either by logging into your account or even without logging in.

Option 1: Pre-Login (Quick Payment without Account Login)

1. Visit the Income Tax e-filing portal and click on e-Pay Tax under the Quick Links section.
2. Enter your PAN, confirm the mobile number with OTP, and proceed.
3. Select Income Tax (Other than Companies) → Advance Tax (100).
4. Choose the correct Assessment Year (AY 2025–26 for FY 2024–25).
5. Enter the payment amount as per your calculation.
6. Select your preferred payment method (Net Banking, Debit Card, Credit Card, UPI, or NEFT/RTGS).
7. Generate a Challan Reference Number (CRN).
8. Complete the payment through your chosen bank or gateway.
9. Download and save the challan receipt. It contains important details like BSR code, CIN, and CRN, which you’ll need while filing your return.

Step-by-Step Guide: Paying Through Post-Login Method

Using the post-login option gives you more control and an easy way to track past payments. It is recommended if you already have an account on the Income Tax e-filing portal.

Option 2: Post-Login (Recommended)

1. Log in to your account on the Income Tax e-filing portal with your PAN/Aadhaar and password.
2. On the dashboard, go to e-File > e-Pay Tax.
3. Click New Payment and select Income Tax as the payment category.
4. Under “Type of Payment,” choose Advance Tax (100).
5. Enter the Assessment Year 2025–26 and the amount to be paid.
6. Select the payment method: Net Banking, Debit Card, Credit Card, UPI, or NEFT/RTGS.
7. Generate a Challan Reference Number (CRN) and complete the payment on your bank’s platform.
8. Once successful, download the challan receipt from the portal. You can also view it later under Payment History in your account.

The advantage of logging in is that your challan is automatically linked with your account, reducing the risk of mismatch when filing your income tax return.

Alternative and Offline Methods of Paying Advance Tax

Even though most taxpayers prefer online payment, the government still allows offline and hybrid methods. This is useful if your bank isn’t listed for online payment or if you face technical issues.

1. NEFT/RTGS Through Bank

• Generate a CRN from the e-Pay Tax portal and choose NEFT/RTGS as the payment mode.
• You’ll receive a mandate form with details like beneficiary account number, IFSC code, and amount.
• Submit this form at your bank branch or initiate the transfer via net banking.
• Once processed, the confirmation and challan can be downloaded from the portal.

2. Payment at Bank Counter

• Generate a CRN online and select Pay at Bank Counter as the method.
• Visit an authorised bank branch with the CRN and pay via cash, cheque, or demand draft.
• The bank will provide you with a stamped challan receipt.
• Later, you can also download the digital challan copy from your e-filing account.

3. Debit/Credit Card and UPI

If your bank supports these, you can complete the payment instantly. UPI has become a popular choice for smaller advance tax amounts. The official FAQs on e-Pay Tax provide the latest list of accepted banks and gateways.

What Happens If You Miss a Deadline or Underpay

Advance tax is designed to spread your tax payments throughout the year. But if you miss an installment or pay less than required, the Income Tax Act applies interest and, in some cases, penalties.

Interest Under Section 234B

This applies if you have not paid 90% of your total tax liability by the end of the financial year. You will be charged 1% interest per month or part of a month on the unpaid amount, starting from 1 April of the next financial year until the date of actual payment.

Interest Under Section 234C

This section applies when you fail to pay the required percentage of advance tax by each due date. For example:

• If you pay less than 15% by 15 June, interest is charged.
• If you pay less than 45% by 15 September, or less than 75% by 15 December, interest is applied on the shortfall.

Interest under Section 234C is also 1% per month for three months for each missed installment (except the last, which is for one month).

Can You Pay Later?

Yes, if you miss an installment, you can still pay in the next one. The law allows you to “catch up,” but interest will apply on the shortfall for the missed period. Paying late is better than not paying at all, since it reduces further interest and penalties.

For detailed explanations, you can check the advance tax section on ClearTax, which also provides calculators for estimating liability.

Common Mistakes and How to Avoid Them

Many taxpayers end up paying extra interest or creating hassles for themselves because of simple errors. Here are the most common mistakes—and how you can steer clear of them.

1. Selecting the Wrong Assessment Year

Always remember that advance tax is paid for the next assessment year. For income earned in FY 2024–25, you must select AY 2025–26. Choosing the wrong AY may result in payment not being adjusted correctly.

2. Using the Wrong Payment Code

Advance tax should always be paid under Minor Head 100 (Advance Tax) in Challan 280. Accidentally selecting “Self-Assessment Tax” or “Regular Assessment Tax” can create mismatches. If you notice a mistake, you can request a correction through your bank or the tax department.

3. Forgetting to Adjust TDS/TCS Already Deducted

Some taxpayers calculate their total tax liability but forget that a part of it has already been deducted as TDS or TCS. This leads to overpayment. Always check your Form 26AS or AIS on the Income Tax portal before finalizing the amount.

4. Ignoring Income from Other Sources

It’s common to forget to include rental income, capital gains, or interest from fixed deposits while estimating advance tax. Any omission may lead to underpayment and interest charges later.

5. Not Saving Challan or Payment Receipt

The challan receipt (containing BSR code, CIN, and CRN) is essential proof of payment. Without it, you may face difficulties while filing returns. Always download and save a copy immediately after payment.

Conclusion

Advance income tax is not as complicated as it may seem. It’s simply a way to pay your taxes in parts during the financial year, reducing the risk of penalties and helping you stay compliant.

To recap:

• Advance tax is payable if your net tax liability exceeds ₹10,000 after TDS/TCS.
• Payments are due on 15 June, 15 September, 15 December, and 15 March.
• You can pay online through the Income Tax e-filing portal using net banking, UPI, or cards, or offline via authorised banks.
• Always select the right assessment year and payment code (Advance Tax – 100).
• Keep your challan receipt safe for filing returns.

Planning ahead and using the online system makes the process fast, transparent, and secure. If you’re unsure of your tax estimates, consider using a reliable calculator or speaking to a tax professional. Staying on top of advance tax ensures peace of mind and avoids unnecessary interest or penalties.

If you want to stay updated on tax deadlines and practical tips, explore the resources on the official Income Tax India website.

FAQ

Who needs to pay advance income tax in India?

Any person whose tax liability after TDS/TCS exceeds ₹10,000 in a financial year must pay advance tax, except senior citizens without business income.

What are the advance tax due dates for FY 2024–25?

The installments are due on 15 June (15%), 15 September (45%), 15 December (75%), and 15 March (100%).

How can I pay advance income tax online?

You can pay via the Income Tax e-filing portal under e-Pay Tax using net banking, debit card, credit card, UPI, or NEFT/RTGS.

What happens if I miss an advance tax installment?

Interest under Sections 234B and 234C will apply on the unpaid or shortfall amount. You can still pay later to reduce further charges.

Do senior citizens have to pay advance tax?

No. Senior citizens above 60 years of age who do not have business or professional income are exempt from paying advance tax.

What is Challan 280 used for?

Challan ITNS 280 is used to pay advance tax, self-assessment tax, and regular assessment tax. For advance tax, select Minor Head 100.