Advance Tax Deadlines For Individual & Corporate Tax Payers

To compute your advance tax liability, follow these steps:

  1. Estimate Total Income: Calculate your estimated total income for the financial year, including all sources such as salary, capital gains, rental income, professional income, interest from fixed deposits, etc.

  2. Apply Deductions: Subtract eligible deductions under sections like 80C (for investments), 80D (for medical insurance), and others from your gross income.

  3. Calculate Tax: Determine the tax payable on the remaining taxable income using the current tax slab rates applicable to you.

  4. Subtract TDS: Deduct the amount of Tax Deducted at Source (TDS) that has already been or will be deducted during the year from your total tax liability.

If your net tax liability (after accounting for TDS) exceeds ₹10,000, you are required to pay advance tax.

Due Date

Advance Tax Payment Percentage

On or before 15th June

15% of advance tax

On or before 15th September

45% of advance tax (-) advance tax already paid

On or before 15th December

75% of advance tax (-) advance tax already paid

On or before 15th March

100% of advance tax (-) advance tax already paid

Penalty on Non-Payment of Advance Tax 

According to Section 234B, if you do not pay at least 90% of your total tax liability through advance tax or TDS/TCS by 31st March, you will be subject to interest at 1% per month on the unpaid amount of tax. This interest will be charged for each month or part of the month until the tax is paid.


Particulars

Rate of Interest

Period of Interest

Amount on which interest is calculated

If Advance Tax paid by 15th June is less than 15%

1% per month

3 months

15% of Amount* (-) tax paid before June 15

If Advance Tax paid by 15th September is less than 45% 

1% per month

3 months

45% of Amount* (-) tax paid before September 15

If Advance Tax paid by 15th December is less than 75% 

1% per month

3 months

75% of Amount* (-) tax paid before December 15

If Advance Tax paid by 15th March is less than 100%

1% per month

1 month

100% of Amount* (-) tax paid before March 15

How to find your capital gains tax from the PMS account?

  1. Login to your PMS account here

  2. Click on the reports section to find Capital Gains

  3. Change the output format to CSV and download the file. Be sure to change the date range for the current financial year from 01/04/2024 to 13/09/2024

  4. If you have a CA, you can share the CSV file with your CA to determine how much capital gains has been earned & to deposit the relevant amount per the advance tax deadlines mentioned above.

  5. Alternatively, follow the steps below to do it yourself. 

    1. Open the CSV file. 

    2. Search for the keyword “Total” and find the relevant realized gain or loss for each portfolio you have invested in. Note, you may see the keyword “Total” twice - use either one.

    3. For instance, here we can see that for the Factor fund portfolio Rs. 8,478.43 is the total gain for the period.

    4. If the portfolio has invested in derivatives, then you will have 2 types of realised gains / loss. One will be for the derivatives sale & the other for the stocks portfolio. In such a case, note the derivatives are taxed at the income slab rate & any losses from derivatives can only be offset with gains from derivatives and cannot be transferred to other asset classes (such as stocks).

    5. Repeat this process for each PMS portfolio i.e. Factor Fund, Momentum Fund (Factor Fund Hedged), Alpha Fund & Debt Fund.

    6. Add up the total gain or loss for all the stocks portfolios against both long term and short term gains. Do the same for the derivatives position. Apply the relevant tax rates to each of the asset classes.

Things to note when determining your advance tax

  1. STCG is at 20% & LTCG is at 12.5% 

  2. LTCG exemption limit has increased to ₹1.25 lakh from listed financial assets held for over a year. This can be deducted from any gains for your total invested portfolio (including PMS & otherwise)

  3. Derivatives (any put options bought) are taxed at the income tax slab

  4. You can refer to this sheet for a basic calculation of advance tax