Who needs to pay advance tax?
Anyone — salaried, freelancer, or business owner — whose total tax liability for the year, after subtracting TDS already deducted, exceeds ₹10,000 must pay advance tax in installments rather than as a lump sum at year-end. It's most commonly relevant for freelancers and consultants, since client payments usually have TDS deducted at a flat rate that doesn't match their actual tax slab.
What happens if I miss an installment?
Missing or underpaying an installment attracts interest under Sections 234B and 234C — roughly 1% per month on the shortfall. Paying even a rough estimate on time is better than skipping it entirely and settling the full amount at year-end.
Can I revise my advance tax estimate during the year?
Yes — your income estimate for the year can change (a new client, a bonus, a significant expense), so it's normal to recalculate before each due date and adjust the remaining installments accordingly, rather than sticking to a single upfront estimate.