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Glossary

Indian Compliance & Tax

When are the four advance tax installment due dates in India?

Section 211 sets four advance tax instalment dates for individuals. Fifteen percent of the year's estimated liability is due by June 15, and forty five percent by September 15. Seventy five percent is due by December 15, and the full hundred percent by March 15. Each instalment is cumulative rather than a fresh slice at every date. The June 15 payment must bring the running total to fifteen percent of the estimated tax. The September payment must bring it to forty five percent overall. Each later instalment raises the running total again, until the March instalment closes the full amount. The schedule assumes the taxpayer can estimate total income for a year that has not finished yet. That estimate has to include any capital gain or crypto sale that has not happened. A gain realised after the June or September instalment simply gets folded into the estimate used for the next instalment. It does not trigger a separate payment of its own. A crypto sale realised in November, for example, is folded into the estimate used for the December 15 instalment rather than waiting for the return. An investor with a 1 crore rupee portfolio estimates their total tax for the year at 4 lakh rupees. By June 15 they pay 60,000 rupees, fifteen percent. By September 15 the running total reaches 1.8 lakh rupees, forty five percent. By December 15 it reaches 3 lakh rupees, seventy five percent, and the remaining 1 lakh rupees is due by March 15. A late or short instalment attracts interest under section 234C, calculated separately for each missed slab rather than as one penalty at year end. A taxpayer who pays nothing until March 15 and then pays the full amount still owes interest on the June, September and December shortfalls. This applies even though the total for the year matches exactly.

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