Advance tax: the 15 June instalment
Fifteen per cent of the year's estimated tax is due by mid-June. Shortfalls carry interest at one per cent a month.
Anyone whose tax for the year, after TDS, is expected to be ₹10,000 or more pays it in advance, in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March.
Resident individuals aged 60 or over with no business income are exempt. Businesses and professionals under the presumptive schemes may pay the whole amount by 15 March.
Why June is the hard one
In June the year has barely begun. The estimate rests on last year's figures, the order book and judgement. Getting it roughly right matters: a shortfall in any instalment attracts simple interest at 1% a month on the amount short.
What to do
Estimate from the first two months' actuals and last year's pattern, and revisit the estimate before each instalment. Our accounting and compliance clients receive a computation from us before each due date.
General information, current at the date shown. It is not advice on your circumstances; write to us before acting on it.