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Section 208 of the Income Tax Act, of 1961, requires all taxpayers to pay advance tax. These provisions apply if your projected tax payable is over ₹10,000. You can use an advance tax calculator to check and evaluate your advance tax liability.

You have to pay this tax in four installments on or before the 15th day of the last month of a quarter to avoid penalties. Using the calculator, you can determine the advance tax amount you need to pay to avoid interest penalties under sections 234B and 234C.

## What is an Advance Tax Calculator?

An advance tax calculator is an online tool through which you can compute the estimated tax on your taxable income. The calculator will then use this estimate to give you the advance tax amount you need to pay every quarter.

You can access this tool on the official Income Tax Department website or other platforms that provide the calculator.

## How to Use an Advance Tax Calculator?

Here are the steps you must follow when using the advance tax calculator on the Income Tax Department website:

• Step 1: Choose the ‘Advance Tax Calculator’

• Step 2: Select the type of taxpayer you are (like individual, HUF, Firm, LLP, or others)

• Step 3: Input the required income, deduction, and exemption details

• Step 4: Click on the ‘Calculate’ button to know your advance tax amount for every quarter

## How to Manually Calculate Advance Tax?

Here is the process you need to follow to manually calculate your estimated tax and advance tax installment amount:

### 1. Calculate Gross Total Income (GTI)

Estimate your GTI by calculating your income under various heads. This includes Salary, Profits and Gains from Business and Profession, Income from House Property, Capital Gains, and Other Sources.

### 2. Compute the Net Taxable Income (NTI)

To calculate NTI, use the mathematical formula:

NTI = GTI – Deductions Available Under Chapter VI-A

So, subtract tax deductions under sections 80C, 80D, 80E, 80E, and 80EE from gross total income to get the net taxable income.

### 3. Get the Final Advance Tax Amount

Apply the tax rate on the net taxable income as per your tax slab to get your estimated tax liability. Then, add the applicable surcharge and cess and subtract the TDS. The final amount that you get is your net tax liability.

If it is above ₹10,000, you need to pay advance tax as per the following table:

 Quarter Advance Tax Instalment Amount 1st Quarter (On or before 15th June) 15% 2nd Quarter (On or before 15th September) 45% 3rd Quarter (On or before 15th December) 75% 4th Quarter (On or before 15th March) 100%

Note: Under the ‘Advance Tax Instalment Amount’, subtract the tax rate from the 2nd quarter with the amount of advance tax already paid.

If you are not well-versed with the rules and regulations of the Income Tax Act, use the advance tax calculator to ensure you pay the right taxes. This tool provides an estimation of advance taxes based on the latest Finance Act. Once you evaluate your advance tax liability, you can pay it online on the e-filing portal.

## FAQs on the Advance Tax Calculator

### What are the variables required to calculate advance taxes using the calculator?

To use the advance tax calculator, you need to input your income for different heads, deductions, exemptions, surcharge and cess if applicable, and TDS.

### Who needs to pay advance taxes?

According to Section 208, any individual with a tax liability of over ₹10,000 in an assessment year needs to pay advance taxes.

### What is the due date for payment of advance taxes?

The due date for the payment of the advance tax installments is the 15th of the last month of every quarter, starting from April.

### What is the penalty for late payment of advance taxes?

According to sections 234B and 234C, you need to pay a penalty if you default on advance tax payment. As per the provisions under these sections, you will have to pay a simple interest of 1% per month or part of the month on late payment.

### What is the income limit for advance tax?

You must pay advance tax if your tax liability exceeds ₹10,000 in a year, unless you're over 60 with no income from a business or profession.

Yes, advance tax is refundable if you pay more than your actual tax liability. The excess will be refunded after you file your income tax returns and the Income Tax Department verifies your request.

### How do you calculate advance tax?

Calculate your total income, subtract eligible deductions, and apply the current tax rates to find your total tax liability. Deduct the TDS, and if the remaining liability exceeds ₹10,000, you can pay it in instalments.

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