Advance tax calculator 2025-26: How much you must pay on salary and LTCG income

Advance tax has to be paid if your estimated income tax liability for the financial year is more than Rs 10,000. But for salaried employees, the employer usually deducts tax at source (TDS) under Section 192, based on the applicable tax slab rates and the deductions and exemptions you’ve declared.

So, if your only income is from salary and your employer has correctly deducted TDS throughout the year, you don’t have to worry about paying advance tax.

Further, in accordance with Section 209(1)(d), any tax already deducted or deductible at source should be subtracted while computing advance tax liability.


According to chartered accountant (Dr.) Suresh Surana if the only source of income is salary and such income is appropriately subjected to TDS, the advance tax provisions do not apply.

Advance tax FY 2025-26 calculator for salary and long term capital gain income

According to Surana, if you opt for the new tax regime and your net total income is up to Rs 12 lakh then it may not result in any tax liability, subject to the employee opting for the applicable tax regime and satisfying prescribed conditions. In such cases as well, no advance tax payment obligation arises.

Also read: Employer deducted TDS but didn’t deposit it: ITAT Kolkata saves employee from Rs 14 lakh tax demand

Here’s an illustration showing how advance tax is calculated (annual figures):

Mr. A (new tax regime), (yearly figures)

• Salary: Rs 13 lakh (no TDS is deducted)
• Long term Capital Gains from listed equity shares: Rs 5 lakh
• House rent income: Rs 2 lakh

(No HRA, No other income or allowances claimed)

Particulars	Amount (Rs)
Gross Salary Income	13,00,000
Less: Standard Deduction	(75,000)
Taxable Salary	12,25,000
House Property Income (Rs. 2,00,000 less Standard deduction 30% u/s 24(a))	1,40,000
Long-Term Capital Gains (Listed Equity)	5,00,000
Less: Exemption u/s 112A	(1,25,000)
Taxable LTCG	3,75,000
Total Taxable Income	17,40,000
Income Tax on Slab Income (Excl. LTCG)	84,750
Tax on LTCG @12.5% u/s 112A	46,875
Total Tax Before Cess	1,31,625
Add: Health & Education Cess @4%	5,265
Total Tax Liability	1,36,890
Advance Tax Applicability (TDS not deducted & Tax > Rs. 10,000)	Yes (Applicable)
Advance Tax Instalments:
– 15 June: 15%	20,534
– 15 September: 45% (cumulative)	61,600
– 15 December: 75% (cumulative)	1,02,668
– 15 March: 100% (cumulative)	1,36,890
Section 234C Relief (for LTCG if earned later and paid in next instalment)	Applicable

Source: CA (Dr.) Suresh Surana

Also read: Advance tax due date December 15: Which incomes qualify and who can pay advance tax in the next quarter?

What is the list of incomes on which advance tax can be paid in next quarter without any penal interest?

Advance tax is required to be paid in installments as per Section 211. However, certain categories of income that arise unexpectedly or cannot be estimated in advance are permitted to be included in subsequent advance tax instalments without attracting interest under Section 234C, provided the taxpayer pays the tax on such income in the next due instalment after the income is earned.

According to Surana, as per the proviso to Section 234C(1), the following type of incomes qualify for this relaxation i.e. Incomes that can be recognised and paid for in the next instalment without penal interest:

• Capital gains (Short-term or Long-term) (e.g., sale of property, shares, mutual funds, gold, etc.)
• Winning from lotteries, crossword puzzles, card games, gambling, betting, horse races, etc.
• Income under the head “Profits and gains of business or profession” arising for the first time
• Dividend income [including deemed dividends under Section 2(22)].

In such cases, if the taxpayer pays the applicable advance tax liability by the next scheduled advance tax instalment date, no interest under Section 234C shall be levied for shortfall attributable to the above incomes.