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Everything You Need to Know About Online Payment of Advance Tax

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Created on
February 21, 2023


What’s Inside

Paying advance income tax payment online is a smart move, as it eases your burden of paying a lumpsum amount at the end of a financial year. This “pay as you earn” scheme helps you pay your taxes in instalments during a financial year.

IT Department allows you to make advance tax payments online or by visiting a branch. Let us learn more about how you can process this!

What Is Advance Tax Payment Online?

Income tax advance tax payment online means paying income tax in instalments, or as and when your monthly income allows you to, during a financial year. For businesses, there are specified dates.

For individuals, you can pay advance tax online, as your salary/monthly income gets credited. You can either automate advance tax payments off your salary or voluntarily make online payments if you have buffer money after paying your monthly expenses.

How Much Should You Pay as Advance Tax?

You know what advance tax is, how to pay it online, and when to pay for it. But how much should you pay?

You can either take the help of an advanced tax calculator using credentials like  the type of taxpayer you are, your net taxable income, and income tax exemptions, or you could calculate it manually:

Step 1

Specify your monthly earnings.

Step 2

Calculate gross taxable earnings.

Step 3

Use the applicable tax slab and compute the payable tax amount

Step 4

Make a monthly/quarterly advance income tax payment online and keep yourself free from paying a massive amount at the end of the financial year.

How To Make An Advance Tax Payment Online?

Step 1

You can either make an online payment through the official web portal of the Income Tax Department or collaborate with an online app to make this payment.

Step 2

Select your payment month and fill in your financial details.

Step 3

Fill in your name, address, PAN card details, Aadhar details, income, and assessment year, and reach the payment gateway.

Step 4

Make the payment and always save a copy for filing the ITR.

Advance Tax Payment – Advantages

Here are some benefits of making an advance income tax payment online:

  • You reduce tax liability as you spread out the tax payments.
  • You reduce the amount of interest and penalties that may be levied if you are unable to pay your taxes in full at the end of the year.
  • You enjoy financial security. Even if you face any unexpected financial emergency, you can rest assured that your taxes are partially paid.

What If You Paid More?

You will be eligible for a refund for an overpayment of advance tax. Let’s see how you can claim it:

Step 1

Fill out the Advance Tax Payment Refund Form, which you can download from the Income Tax Department‘s website.

Step 2

Fill in details like your PAN number, the amount of advance tax paid, the assessment year, etc.

Step 3

Contact your bank and submit the form with other documents.

Step 4

After verifying your credentials, the bank will initiate the refund process, and the amount will be credited to your account shortly


One of the wisest things you could do is plan your finances, assess your annual income tax, and pay in instalments by making an income tax advance tax payment online.

You can trust Fi Money for the same and get all your tax-related questions answered by Ask Fi, an intuitive personal finance assistant. Fi Money will also encourage you to build promising monetary habits, pay taxes in advance, meet all your financial goals and help make significant financial choices.

Frequently asked questions

Can advance tax be paid online?

Yes! You can make an advance tax payment online through the official website of the Income Tax department.

How do I pay my advance tax payment?

You have the option of paying advance taxes online or offline. Make an online payment using the e-payment facility provided by the Income Tax Department.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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