Advance Tax First Year After Return: 4 Instalments + 234B
Advance tax after moving to India: 15 Jun/Sep/Dec/Mar instalments, RNOR split, Section 234B/234C interest, and first-year estimates.
The 60-second version
The first year back is when advance tax surprises people. You may owe instalments on Indian salary from day one while foreign income is still partially taxable depending on RNOR status.
Why the first year is different
Advance tax applies when your estimated tax liability after TDS exceeds ₹10,000 for the financial year. The moment you become resident or RNOR with Indian salary, that threshold is easy to cross.
I split the year into two mental ledgers: income taxable in India from the date of residency, and foreign income that may still be outside India tax scope during RNOR.
Missing an instalment triggers Section 234B interest (1% per month on shortfall) and Section 234C for deferment. That hurts more than most people expect on a mid-year return.
Read ITR due date news alongside this — advance tax and return filing are one workflow.
Four instalments — cumulative targets
Resident individuals pay on these dates (FY 2025-26 onward standard schedule):
| Due date | Cumulative % of annual tax | What I verify |
|---|---|---|
| 15 June | 15% | Salary TDS vs projected slab |
| 15 September | 45% | Capital gains events booked? |
| 15 December | 75% | Foreign income RNOR treatment confirmed |
| 15 March | 100% | Schedule FA items flagged for ITR |
My first-year advance tax workflow
Fix residency start date
Day you triggered Section 6 resident or RNOR. Everything before is a different tax posture.
Project India-taxable income
Salary, rent, Indian capital gains, and RNOR-phase foreign income per your CA's reading.
Subtract TDS and credits
Form 26AS TDS + expected Form 67 foreign tax credit.
Pay challan 280
Use correct assessment year and advance tax type on the NSDL/IT portal.
Log each instalment
Screenshot challan. Match against Form 26AS within two weeks.
Return-year tax timeline
Before each instalment date
- I updated RNOR/ROR status with my CA.
- I reconciled foreign W-2 / SA302 with India salary credits.
- Estimated tax minus TDS exceeds ₹10,000.
- Challan 280 paid with correct PAN and AY.
- Form 67 timeline aligned if claiming FTC.
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RNOR does not mean no advance tax
RNOR can shield some foreign income, but Indian salary and India-sourced gains still attract advance tax the quarter they accrue.
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Do NRIs pay advance tax?
Only on income taxable in India for that year. Pure NRI years with no India tax liability above ₹10,000 typically have no advance tax.
What if I returned in October?
You still owe instalments on due dates after return. Catch up on the next due date with cumulative percentage targets.
Does US tax withholding reduce advance tax?
Foreign tax credit via Form 67 can reduce net Indian liability, which lowers advance tax. File Form 67 before claiming credit in ITR.
Is 234B interest avoidable?
Pay 90% of annual tax by 31 March through instalments or self-assessment to minimise 234B exposure.
Which ITR form?
Usually ITR-2 or ITR-3 if you have capital gains or foreign assets. See the filing guide for your exact mix.
Can I pay entire tax in March?
You can, but missing earlier instalments may still attract 234C deferment interest even if 234B is avoided.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.