How to Pay Advance Tax Online Using e-Pay Tax facility (Challan 280)?
In India, direct taxes are broadly divided into Tax Deducted at Source (TDS), advance tax, and self-assessment tax. While TDS is deducted at the time of payment, taxpayers are required to pay advance tax and self-assessment tax themselves.
Thanks to the e-filing system of the Income Tax Department, you can now complete the entire process online using the e-Pay Tax facility. This blog explains what is advance tax, the advance tax due dates, and how to pay advance tax online step by step.
What is advance tax?
Advance tax refers to paying income tax in installments throughout the financial year instead of paying a lump sum after the year ends. According to Section 208 of the Income Tax Act, advance tax is applicable if the total tax liability exceeds ₹10,000 in a financial year after adjusting TDS.
You can easily estimate your tax liability using an income tax calculator.
Advance tax payment due dates (FY 2025-26)
Advance tax must be paid in instalments as per the following schedule:
Installment | Due date | Advance tax payable |
|---|---|---|
First | On or before 15 June 2025 | 15% of total tax liability |
Second | On or before 15 September 2025 | 45% of total tax liability minus advance tax already paid |
Third | On or before 15 December 2025 | 75% of total tax liability minus advance tax already paid |
Fourth | On or before 15 March 2026 | 100% of total tax liability minus advance tax already paid |
Taxpayers opting for the presumptive taxation scheme must pay 100% of the advance tax liability in a single instalment by 15 March 2026.
The advance tax last date for FY 2025-26 is 15 March 2026.
Common mistakes while paying advance tax online
Some common errors include:
- Selecting the wrong Assessment Year (AY)
- Choosing the incorrect Minor Head (not selecting Advance Tax (100))
- Selecting the wrong tax payment category
- Delaying or missing due dates, which can attract interest and penalties
- Not saving the payment receipt for future reference
Also Read: What is ITR in India? Filing Steps, Documents & Refund Process
Penalty for late or non-payment of advance tax
Failure to pay advance tax on time attracts interest, not a fixed penalty.
Interest under Section 234B
If at least 90% of the total tax liability is not paid by 31 March, either through advance tax or TDS, interest at 1% per month is charged on the unpaid amount.
Interest under Section 234C
Particulars | Rate of interest | Period of interest | Amount on which interest is calculated |
|---|---|---|---|
If advance tax paid by 15 June is less than 15% | 1% | 3 months | 15% of tax minus tax paid |
If advance tax paid by 15 September is less than 45% | 1% | 3 months | 45% of tax minus tax paid |
If advance tax paid by 15 December is less than 75% | 1% | 3 months | 75% of tax minus tax paid |
If advance tax paid by 15 March is less than 100% | 1% | 1 month | 100% of tax minus tax paid |
What is e-Pay Tax?
The e-Pay Tax facility is the official online system provided by the Income Tax Department for making tax payments.
Earlier, taxpayers used separate challans for income tax payments, such as Challan 280. This challan was used to pay advance tax, self-assessment tax, and regular assessment tax.
Under the current system, the challan for income tax payment (Challan 280) is integrated into the e-Pay Tax facility, allowing taxpayers to complete their tax payments online through a single, streamlined interface.
Also Read: Income Tax Portal – Login & Access Income Tax e-Portal | m.Stock
When should you use the e-Pay Tax facility?
The e-Pay Tax service can be used for the payment of:
- Advance tax
- Self-assessment tax
- Regular assessment tax, following a notice from the tax department
- TDS/Tax Collected at Source (TCS)
- Penalties or interest
Details required before paying advance tax online
Before you proceed with the e-challan income tax payment, keep the following details ready:
- Permanent Account Number (PAN)
- Correct AY
- Estimated tax amount
- Bank account details (net banking/UPI/debit card)
- Registered mobile number for OTP
How to pay advance tax online using e-Pay Tax: step-by-step guide
To complete your advance payment of tax online, follow these steps:
- Visit the official Income Tax e-filing portal.
- Click on ‘e-Pay Tax’ under ‘Quick Links’.
- Enter your PAN and the mobile number linked to your Aadhaar.
- Enter the OTP received on your registered mobile number.
- Confirm your identity by verifying your PAN and name displayed on the screen.
- Select ‘Income Tax’ or the relevant tax payment category as the tax type.
- Choose the correct AY and select ‘Advance Tax (100’) as the payment type.
- Enter the required tax details.
- Select your preferred payment mode.
- Review and confirm the details.
- Download the receipt and note down the Challan Identification Number (CIN).
How to verify the e-challan income tax payment status
To verify your payment, you can:
- Log in to the income tax portal.
- Navigate to e-File > e-Pay Tax > Payment History.
- View or download the receipt.
The status will be shown as “PAID” once the transaction is successfully processed.
What to do if you make a mistake in the challan for income tax payment
You can request corrections for:
- AY
- Tax applicable (Major Head)
- Type of payment (Minor Head)
Steps:
- Log in to the e-filing portal.
- Go to Services > Challan Correction.
- Click on ‘+ Create Challan Correction Request’.
- Select the correction type.
- Choose AY or CIN to create a challan request
- Correct the required details.
- Review and confirm.
- E-Verify the request through the available options.
Note: Correction is generally allowed only once. For additional changes, you may need to approach your Jurisdictional Assessing Officer.
Difference between Challan 280 and other tax challans
Much like Challan 280, there are different challans for different purposes:
Challan 280: Income tax payments (advance tax, self-assessment tax, regular assessment tax)
Challan 281: TDS and Tax Collected at Source (TCS)
Challan 282: Other direct taxes, such as gift tax, wealth tax, estate duty, and expenditure tax.
Conclusion
Understanding what is advance tax, keeping track of advance tax due dates, and knowing the advance tax last date can help you avoid interest and ensure smooth tax filing.
With the simplified e-Pay Tax facility, completing your advance payment of tax is quick and convenient.
Also Read: What are TDS Traces? How to access TDS Login
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FAQ
Advance tax is applicable if the total tax liability exceeds ₹10,000 in a financial year after adjusting TDS. Resident senior citizens (aged 60 or above) without income from a business or profession are exempt from paying advance tax, even if the liability exceeds the threshold.