Compliance
Advance tax for doctors: due dates and the 15 March rule Sections 403 to 408 of the Income-tax Act, 2025, the single instalment for 44ADA doctors, and interest under sections 424 and 425.
A salaried doctor's tax is deducted every month. A doctor in private practice gets most fees in full, so the Act asks for the tax during the year instead of in one lump at filing time. The rule is simple once you know which track you are on, and the interest for missing it is small but certain.
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- Advance tax is payable when the year's tax, after TDS, is ₹10,000 or more (section 404 of the Income-tax Act, 2025). A resident aged 60 or more is exempt only if they have no business or professional income (section 403(3)), so a practising senior doctor still pays.
- A doctor who declares profit under section 58(2) (the old 44ADA) pays the whole advance tax on or before 15 March (section 408(2)). Everyone else pays at least 15%, 45%, 75% and 100% by 15 June, 15 September, 15 December and 15 March (section 408(1)).
- Short payment costs interest: 1% on the 15 March shortfall for a presumptive payer (section 425(3)), 3% per instalment on the four-instalment track (section 425(1)), plus 1% a month from 1 April if less than 90% of the assessed tax was paid (section 424, old 234B).
A doctor who declares 50% of receipts as profit under the presumptive scheme in section 58(2) of the Income-tax Act, 2025 (section 44ADA of the 1961 Act) pays the whole year's advance tax in one instalment on or before 15 March. A doctor outside that scheme pays in four instalments: at least 15% by 15 June, 45% by 15 September, 75% by 15 December and the full amount by 15 March. In both cases advance tax is due only if the tax for the year, after TDS, comes to ₹10,000 or more.
Which Act applies depends on the year. The Income Tax Department's FAQ says advance tax for FY 2025-26 is governed by the 1961 Act, and for tax year 2026-27 by the 2025 Act, with the first 2026-27 instalment "due to be paid on 15th June 2026". We cite the 2025 sections and give the old number where the Department's pages give it.
Does a doctor have to pay advance tax?
Section 404: advance tax "shall be payable by the assessee during a Financial year, where the amount of such tax payable during that year, as computed under this Part, is ₹10000 or more." Section 405 computes it as tax on the estimated income minus the tax that will be deducted or collected at source on income counted in that estimate. So a doctor whose hospital consultant fees suffer 10% TDS counts that TDS before checking the ₹10,000 line.
Section 403(3) exempts a resident individual who "(a) does not have any income chargeable under the head 'Profits and gains of business or profession'; and (b) is of the age of sixty years or more". Both conditions must be met. A doctor of 65 still in practice has professional income and is not exempt.
What are the advance tax due dates?
| Due date | Doctor on section 58(2) presumptive scheme (old 44ADA) | Any other doctor |
|---|---|---|
| 15 June | Nothing due | At least 15% of the advance tax |
| 15 September | Nothing due | At least 45%, less what was paid earlier |
| 15 December | Nothing due | At least 75%, less what was paid earlier |
| 15 March | "the whole amount of advance tax" (section 408(2)) | The whole amount, less what was paid earlier |
Section 408(3) adds that any amount paid as advance tax on or before 31 March counts as advance tax for that financial year. A presumptive doctor may pay earlier instalments voluntarily; section 408(2) fixes only the last date.
When paying, the Department's FAQ asks you to choose the correct year: assessment year 2026-27 for FY 2025-26 liabilities, and tax year 2026-27 for FY 2026-27 liabilities.
What interest applies if you pay late or short?
| Section | When it applies | Rate |
|---|---|---|
| 425(3) (old 234C) | Presumptive payer whose advance tax by 15 March is less than the tax due on returned income | Simple interest at 1% on the shortfall |
| 425(1) (old 234C) | Four-instalment payer short of 15%, 45%, 75% or 100% of tax due on returned income at each date | 3% on the shortfall at 15 June, 15 September and 15 December; 1% at 15 March |
| 425(2) | Relief on the four-instalment track | No interest for June if 12% or more was paid by 15 June, and for September if 36% or more by 15 September |
| 424 (old 234B) | Advance tax not paid, or paid less than 90% of the assessed tax | Simple interest at 1% for every month or part of a month from 1 April after the tax year, on the shortfall |
Section 425(4) waives the section 425 interest where the shortfall comes from underestimating, among other items, "income under the head profits and gains of business or profession accruing or arising for the first time", provided the tax on it is paid in a later instalment or by 31 March. That helps in the first year of a new practice.
How much is the interest in rupees?
Illustration only, using the rates above. A doctor on the presumptive scheme estimates tax for the year, after TDS, at ₹1,20,000. On 15 March she pays ₹1,00,000. She pays the balance ₹20,000 as self-assessment tax on 31 July, and that turns out to be the correct tax.
| Interest | Working | Amount |
|---|---|---|
| Section 425(3) | 1% of ₹20,000 | ₹200 |
| Section 424 | ₹1,00,000 is less than 90% of ₹1,20,000 (₹1,08,000), so 1% a month on ₹20,000 for April, May, June and July (section 424(4) stops the count when the tax is paid) | ₹800 |
| Total | ₹1,000 |
Had she paid ₹1,08,000 or more by 31 March, section 424 would not have applied, and only the section 425(3) interest on the March shortfall would remain.
How do you estimate the income in February?
- Total gross receipts from April to the end of February from the clinic's day books and bank account, and add a fair estimate for March.
- Add fees from hospitals or other clinics, gross of TDS, and note the TDS deducted on them from the tax credit statement for your PAN.
- Check the cash share. The ₹75 lakh presumptive limit for doctors applies only if cash received is 5% or less of gross receipts (section 58(2), Table Sl. No. 3); otherwise the limit is ₹50 lakh.
- Add other income: interest, rent, salary.
- Ask your CA to compute the tax under the regime you are on, subtract TDS, and pay by 15 March.
Our post on income tax for doctors under the 2025 Act covers the presumptive limits and the two tax regimes, and our post on the monthly accounts pack for your CA shows the receipts summary that makes the February estimate quick.
Questions
What is the advance tax due date for 44ADA?
15 March. Section 408(2) of the Income-tax Act, 2025 says an assessee declaring profit under section 58(2), Table Sl. No. 1 or 3 (the old 44AD and 44ADA) pays the whole advance tax on or before 15 March. The Department's ITR-4 page says the same for 44ADA filers under the old Act.
Is a senior citizen doctor exempt from advance tax?
Not while practising. Section 403(3) exempts a resident individual aged 60 or more only if they have no income under the head profits and gains of business or profession.
Is advance tax paid on gross fees or after TDS?
After TDS. Section 405 deducts the tax that will be deducted at source on income counted in the estimate, and the ₹10,000 test in section 404 applies to that net figure.
What if I pay on 20 March instead of 15 March?
It still counts as advance tax for the year under section 408(3), because it is paid by 31 March. Interest under section 425(3) still applies on any shortfall at 15 March.
Sources
- Ministry of Law and Justice, The Income-tax Act, 2025 (No. 30 of 2025), Gazette of India Extraordinary Part II Section 1, No. 35, 21 August 2025: sections 58(2), 403 to 408, 424, 425 (accessed 30 Oct 2026)
- Income Tax Department, e-filing portal, Tax Payments FAQ (Income Tax Act 2025), FAQs 14 to 22 (accessed 30 Oct 2026)
- Income Tax Department, e-filing portal, File ITR-4 (Sugam) Online: advance tax for section 44ADA, AY 2026-27 (accessed 30 Oct 2026)
This is operational guidance for clinics, not legal or tax advice. Confirm with your state authority, council or CA.
Drafted with AI assistance; every fact checked against the sources listed; reviewed by the Vitels team.