The following categories of taxpayers should pay advance tax:

• Any taxpayer whose estimated total tax liability during a financial year is ₹10,000 or more.
• Salaried individuals with additional income sources not covered by TDS and whose tax liability is above ₹10,000.
• Freelancers and professionals with tax liability above ₹10,000.
• Businesses and companies, including those opting for presumptive taxation schemes.
• Senior citizens who earn income from business or profession (senior citizens without business/profession income are exempt).

Advance tax is payable in installments across the financial year, and failure to pay on time attracts interest penalties. Senior citizens aged 60 or above and having no business/profession income are exempt from advance tax payments but may opt to pay it voluntarily. Therefore, any individual or entity with an estimated tax liability of ₹10,000 or more in a year should pay advance tax according to the Income Tax Act.