income in the same year itself It refers to paying a part of your yearly taxes in advance It is the income tax payable if your tax liability exceeds Rs 10000 in the financial year It should be paid in the year in which the income is received Individuals who are at least 60 years old , and do not run any business of any kinds are exempt for paying Advance Tax. An assessee who opted for the presumptive business scheme where the income of the business is assumed at 8% of turn over of less than 2 crores in INR For companies On / before 15th June – not less than 15% of advance tax On/before 15th September – not less than 45% of advance tax On / before 15th December – not less than75% of advance tax On / before 15th march – 100% of the advance tax less amount already paid On / before 15th September – not less than 30% of advance tax On / before 15th December –not less than 60% of advance tax On/before 15th March – 100% of the advance tax less amount already paid If tax is not paid or paid less than the stipulated tax you would be penalised and would have to Pay extra under sections 234A ,234B, 234C so there is no escaping from tax Interest -1% simple interest /month on the defaulted amount for the 3 months The interest penalty would continue up to the next deadline After the last deadline (15March ) the tax is not paid then the 1% would be on the defaulted amount for a month until the tax is fully paid Determine the income - other than salary and any ongoing agreement that might pay out later Minus the expenses – deduct expenses from income like rent of the work place , travel expense , internet and phone costs etc Total the income – add up other income that you might receive in the form of rent , interest income etc. deduct the TDS deducted from your salaried income Total advance tax – if the tax due exceed Rs 10,000 then you will have to pay advance tax Companies – it is mandatory to pay tax through electronic payment mode( by using internet banking facilities of authorised bank) Individuals – electronic mode Other taxpayers – either electronically or by depositing the challan at the receiving bank If the tax paid is higher than the required amount he / she will receive the excess amount as a refund If the amount paid is more than 10% of tax liability then the y will get an interest of 6% per annum on the excess amount paid