Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The ₹10,000 trigger
Advance tax applies when your net tax for the year — after subtracting the TDS already deducted — is ₹10,000 or more. It commonly catches people with significant interest, capital gains, rent, dividends or business income on which enough TDS isn’t deducted.
Who is exempt
A resident senior citizen (60+) with no business or professional income does not have to pay advance tax — they can pay at filing instead. Everyone else over the threshold must pay in instalments, or face interest under Sections 234B and 234C. Confirm the current rules per the Finance Act.
A worked example
Example: you have a salary (with TDS) plus ₹5 lakh of capital gains on which no TDS was deducted. If the tax on those gains is, say, ₹60,000, that exceeds ₹10,000, so you owe advance tax on it during the year. Missing it triggers interest. A salaried person whose employer deducts all the TDS usually has nothing extra to pay. Our team can compute your instalments.