How to Pay Advance Tax A Step-by Step-Guide

How To Pay Advance Tax – A Step by Step Guide

Posted by CA Pankaj Kumar Vats
On 7 Dec 2022

It is really simple to pay advance tax online.
The Process for Advance tax Payment is as follows:-


Step 1:-  Calculate the Advance Tax Liability-75% of the Total Tax Liability should be paid-3rd Installment of Advance Tax -Due date 15th Dec 2022
Step 2:- Login at Income Tax Portal
Step 3:- Create the Advance Tax Challan
Step 4:- Select the mode of payment
Step 5:- Make the Payment
Step 6:- Download and Save the Challan


Let us understand the above steps in details

Step-1 Calculate the Advance Tax Liability – 75% of the Total Tax Liability should be paid 

Let us understand this with the help of example
Let us assume that the total Income for the Year will be Rs. 10,00,000.00
And the Tax System Opted is New Regime
Thus Total Tax Liability for the Year will be 79,400.00
Let us assume that the Advance tax deposited in First and Second Installment is total Rs. 50,000.00

So the Advance Tax that needed to be paid in 3rd Installment is as follows

Total Tax Liabilty for the Year (A)


75% of the total Tax Liabilty (B)       59,550.00
Total Advance Tax Already Paid (C )       50,000.00
Advance Tax Payable (B) – (C )       9,550.00
Tax Payment Bifurcation        
Basic Tax       9,183.00
Health Cess       367.00
Total Tax       9,550.00

Step 2:- Login at Income Tax Portal
Login at

Step3: Create the Advance Tax Challan
Click on the Menu Options – Horizontal Three lines as shown in the screenshot

Select the Option -“e-File”

Select the Option -“e-Pay Tax

Click on the Button “New Payment”

Select the Option for Advance Tax and Proceed

Select the Assessment Year as 2023-24

Select the Option as Advance Tax  and then select the option continue

Fill up the amount of tax, health cess and surcharge

Step 4:-  Select the mode of payment
There are lot of tax Payment Options available
Tax can be paid via Net Banking, Debit Card, RTGS, NEFT, Payment Gateway or by visiting the Bank as well
We just need to select the relevant option for payment of tax

Step 5:-  Make the Payment
After selecting the method of payment, we need to make payment of advance tax

Step 6:-  Download and Save the Challan 
After Payment of Advance Tax, please ensure to download the copy of Challan

Key Note: While Making Payment of Advance tax, one must ensure the following to avoid any trouble
The Assessment Year is selected Properly.
The Amount of Tax is filled correctly.

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