New Delhi, Aug. 18 -- Advance tax is the system of paying income tax during the tax year instead of waiting until the end of the year. Under the Income Tax Act, 2025, taxpayers whose estimated tax liability after adjusting TDS is Rs.10,000 or more shall pay advance tax in instalments.

The new act came into force on 1 April 2026, and applies to income earned and tax payments made for Tax Year 2026-27 and onwards.

Here are the key rules taxpayers should know.

Any taxpayer, including an individual, firm, or company, whose estimated tax liability for the tax year is Rs.10,000 or more after adjusting TDS is required to pay advance tax.

However, individuals earning only salary income do not need to pay advance tax because their employer ded...