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Advance tax for online sellers

Tax isn't only due at year-end. If you owe more than ₹10,000, you pay it in instalments — here's the schedule and how to size each one.

By the Launch My Office team · Updated 2026-06-22 · 5 min read

Advance tax is the "pay as you earn" part of income tax. If your total tax for the year exceeds ₹10,000, you must pay it in four instalments rather than all at once. Estimate your bill with the Income Tax Calculator first.

The instalment schedule

Due dateCumulative advance tax
15 June15%
15 September45%
15 December75%
15 March100%

Presumptive taxpayers

If you use 44AD presumptive taxation, you pay the entire advance tax in a single instalment by 15 March — a useful simplification.

How to calculate each instalment

  1. Estimate annual taxable income (profit).
  2. Compute tax via the calculator.
  3. Subtract TDS/TCS already deducted — including marketplace TCS under 194-O.
  4. Pay the cumulative percentage due by each date.
Marketplace TCS and any TDS reduce your advance-tax requirement, since that tax is already collected. Always net it off before paying.

Penalties for shortfall

Underpaying triggers interest under Sections 234B and 234C at 1% per month on the shortfall. Estimating early and paying on schedule avoids it.

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Frequently asked questions

Who has to pay advance tax?

Anyone whose total tax for the year, after TDS/TCS, exceeds ₹10,000.

Do 44AD taxpayers pay in instalments?

No. Under presumptive taxation you can pay the whole advance tax by 15 March in one go.

Does marketplace TCS reduce advance tax?

Yes. TCS collected by marketplaces is credited to you and reduces your advance-tax requirement.

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