Quarterly Advance Tax payment on Interest received from bank savings ?

A) Do you really need to pay advance tax quarterly on bank interest?

Yes — but only if your total tax (after TDS) for the year exceeds ₹10,000.

Advance tax must be paid in 4 instalments:

15 June – 15%

15 Sept – 45%

15 Dec – 75%

15 Mar – 100%

(Senior citizens without business income are exempt.)

B) Recommended way to pay the tax

✔ Use Challan 280 (Advance Tax / Self-Assessment Tax) on the Income Tax Portal or net banking.

✔ Include all interest income while estimating tax.

✔ Pay instalments before the due dates to avoid interest.

C) Can you pay the entire tax at ITR filing time?

Yes, you can.

But if advance tax was required, then you will pay interest:

• Section 234C – interest for missing instalments
• Section 234B – interest for paying less than 90% tax before 15 March

Interest is 1% per month and is automatically calculated in the ITR.

No other penalty, only interest.

You can contact me to get more personalised consultation.

Assuming advance tax payable is Rs.10k or more

1) Non-payment will result into outflow of interest 

2) Compute total income and tax liability on due dates 

3) Yes. It will result into payment of interest on deferment or short payment/non-payment of advance tax

For detailed discussion you may opt for phone consultation