Advance Tax for Freelancers: Deadlines, Calculation & Payment Guide
Complete guide to paying advance tax as a freelancer - due dates, how to calculate, payment process, and penalties for late payment.
Next Advance Tax Deadline
March 15, 2026 - Pay 100% of your estimated tax
Miss this deadline and you'll pay interest under Section 234B and 234C.
📑 Table of Contents
1. What is Advance Tax?
Advance Tax is the income tax you pay in installments during the financial year, instead of paying it all at once when you file your ITR.
Think of it as "pay as you earn" - the government wants you to pay tax on income as you earn it, not wait until the end of the year.
💡 Simple Example
If you expect to earn ₹15 lakh this year and your estimated tax is ₹1.5 lakh, you need to pay this ₹1.5 lakh in 4 installments throughout the year, not in one lump sum when filing ITR.
2. Who Should Pay Advance Tax?
You must pay advance tax if your total tax liability for the year exceeds ₹10,000 (after TDS).
Must Pay Advance Tax
- • Freelancers with tax > ₹10,000
- • Consultants & professionals
- • Business owners
- • Rental income earners
- • Capital gains recipients
Exempt from Advance Tax
- • Senior citizens (60+) without business income
- • Tax liability ≤ ₹10,000
- • 44ADA users (special rule - see below)
3. Advance Tax Due Dates for FY 2025-26
| Due Date | Installment | Cumulative % | Example (₹1.5L tax) |
|---|---|---|---|
| June 15, 2025 | 1st Installment | 15% | ₹22,500 |
| September 15, 2025 | 2nd Installment | 45% | ₹67,500 (total) |
| December 15, 2025 | 3rd Installment | 75% | ₹1,12,500 (total) |
| March 15, 2026 | 4th Installment | 100% | ₹1,50,000 (total) |
⚠️ Important Note
If you miss an installment, pay it with the next one. It's better to pay late than not pay at all - the penalty for complete non-payment is higher.
4. How to Calculate Advance Tax
Follow these steps to calculate your advance tax:
Estimate Your Annual Income
Add up all expected freelance income for the year
Calculate Taxable Income
Gross Income - Expenses (or 50% if using 44ADA) - Deductions
Apply Tax Slabs
Use new regime slabs (0-4L: 0%, 4-8L: 5%, 8-12L: 10%, etc.)
Add Cess (4%)
Total Tax = Tax Amount + 4% Health & Education Cess
Subtract TDS Already Deducted
Advance Tax = Total Tax - TDS (check Form 26AS)
Skip the Math - Use Our Calculator
Our free tax calculator automatically shows your advance tax schedule with exact amounts for each due date.
Calculate Advance Tax →5. How to Pay Advance Tax Online
- Go to e-Pay Tax portal: Visit e-Pay Tax
- Enter PAN and Mobile: Verify with OTP
- Select Challan: Choose "Income Tax" → "Advance Tax (100)"
- Select Assessment Year: AY 2026-27 for FY 2025-26
- Enter Amount: Enter the advance tax amount
- Choose Payment Mode: Net Banking / Debit Card / UPI / NEFT/RTGS
- Complete Payment: Save the challan receipt (CIN number)
Pro Tip
Always save the challan receipt with CIN (Challan Identification Number). You'll need it while filing ITR to claim credit for advance tax paid.
6. Penalties for Late Payment
Section 234B - Default in Advance Tax
Interest: 1% per month on unpaid tax
When: If you pay less than 90% of total tax as advance tax
Section 234C - Deferment of Advance Tax
Interest: 1% per month for 3 months
When: If you miss individual installment deadlines
Example: If your tax liability is ₹1,50,000 and you don't pay any advance tax, you'll pay approximately ₹18,000 as interest (12% for the year).
7. 44ADA and Advance Tax Exemption
Good News for 44ADA Users!
If you're a freelancer using Section 44ADA (presumptive taxation), you can pay 100% of your advance tax in a single installment by March 15 instead of quarterly payments.
This is a huge relief for freelancers because:
- You don't need to estimate income quarterly
- No penalty for missing June, September, December deadlines
- Just pay everything by March 15
- Easier cash flow management
Eligibility for 44ADA: Gross receipts up to ₹75 lakh (if digital payments are 95%+) or ₹50 lakh otherwise.
Never Miss a Tax Deadline
GigBooks automatically calculates your advance tax and reminds you before each due date.