Advance tax planner and tax-pot system

Advance tax catches the self-employed out because it falls due during the year, not after. The fix is a habit and a worksheet: move a fixed slice of every receipt into a separate tax-pot account, then this planner tells you what to pay and when. Presumptive taxpayers have it easiest, a single payment by 15 March.

Last reviewed: 29 May 2026

Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →

What it contains

A tax-pot setup, an instalment worksheet for non-presumptive taxpayers, and the single-instalment note for presumptive taxpayers.

How to use it

Set up the tax pot first

The habit of moving a slice of each receipt into a separate account is what makes advance tax painless, do this before worrying about the exact instalment maths.

Recompute before each date

For non-presumptive taxpayers, re-estimate your income before each instalment and top up to the cumulative percentage, your income is clearer each quarter.

Presumptive: just 15 March

If you are on 44AD or 44ADA, ignore the quarterly dates, pay the whole estimated tax once by 15 March.

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ADVANCE TAX PLANNER + TAX-POT SYSTEM

  DO YOU OWE ADVANCE TAX?
  [ ] Estimate your tax for the year, less TDS already deducted. If Rs 10,000 or more -> you must pay advance tax.
  [ ] Senior citizen (60+) with NO business/profession income? -> exempt from advance tax (just pay the balance at filing).

  STEP 1 - THE TAX-POT HABIT (do this all year):
  [ ] Open a separate savings sub-account = your 'tax pot'
  [ ] On every receipt, move aside a fixed % (e.g. presumptive 44AD ~ 6-8% of receipts is your income; set aside the tax on that)
  [ ] Then paying advance tax is just a transfer, not a scramble

  STEP 2 - INSTALMENT WORKSHEET (NON-presumptive):
  Estimated total tax for the year (after TDS): Rs __________
  - By 15 Jun 2026: pay 15% cumulative = Rs ________
  - By 15 Sep 2026: pay 45% cumulative = Rs ________
  - By 15 Dec 2026: pay 75% cumulative = Rs ________
  - By 15 Mar 2027: pay 100% = Rs ________
  (Recompute the estimate before each date as income becomes clearer, and top up.)

  STEP 3 - PRESUMPTIVE (44AD/44ADA):
  [ ] Pay the WHOLE amount in a SINGLE instalment by 15 March 2027. One date, one payment.

  MISS A DATE? Interest under Sections 234B/234C runs at 1% per month (simple). 234C safe-harbour: at least 12% by 15 Jun and 36% by 15 Sep avoids it.