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How to Compute Advance Tax
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Step 1
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Estimate income of current financial year

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Step 2
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Calculate tax on such income

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Step 3
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Calculate surcharge, education cess, relief etc. as may be applicable

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Step 4
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Calculate net tax payable

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Step 5
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Deduct TDS / TCS / MAT credit

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Step 6
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Calculate balance tax payable.

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Note –
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If this balance tax payable is 10,000 or more, then only advance tax payable.

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Round off of Income and Tax
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Income shall be rounded off to nearest 100 and fraction of 100 to be ignored.

Interest is calculated on such rounded off figure

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Advance tax in case of Casual income / Capital Gain Income
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(1) Such income cannot be properly estimated by assessee

(2) Such income can’t be assumed as earned evenly throughout the financial year

(3) In this case advance tax estimate of different dates cannot be made correctly.

(4) In these cases, the assessee shall be liable to pay advance tax only after the date such income arises (due dates of advance tax before earning such income, relevant) [proviso to section 234C]

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