Advance Tax

What is Advance tax

Advance tax is a form of direct tax wherein government collects the income tax from persons in a more uniform manner instead of waiting for the end of the financial year when the returns are filed.

Broadly every person whose tax liability exceeds INR 10,000 in a financial year is liable to pay advance tax. Failure to do so will attract a penal interest of 1% per month until the tax is paid.

The advance tax payment due dates are as follows:

On or before 15th June: 15% of tax liability
On or before 15th September: 45% of tax liability
On or before 15th December: 75% of tax liability
On or before 15th March: 100% of tax liability

However, calculations for tax liability can change depending on any new guidelines issued by the government during the budget session or additional notification by the income tax department, thereby, making managing tax computations difficult and prone to error.

Sandbox provides Advance tax calculator APIs that can help in calculating the advance tax liability

Available Advance Tax Calculators

Calculate advance tax as per the old regime: calculates advance tax as per the Old Tax Regime.
Calculate advance tax as per the new regime: calculates advance tax as per the New Tax Regime introduced in 2020.