How To Calculate Advance Tax?

Estimate your total income for the financial year

Add income from salary, business, capital gains, rent, interest, and other sources

Apply the applicable income tax slab rates to the estimated taxable income

Add surcharge, if applicable

Add health and education cess

Subtract eligible deductions and exemptions

Subtract TDS, TCS, and any other tax already paid

The remaining amount is your advance tax liability

Divide the advance tax liability into installments as per due dates

Pay each installment based on the percentage due by that date

Recalculate if your income changes during the year and pay any shortfall

Suggested for You

Trending Today