Advance Tax Due Dates: Complete Installment Guide for FY 2026-27
8/16/2026
If your income includes anything beyond a salary that's already covered by TDS — business profits, professional fees, capital gains, rental income, or interest — the Income Tax Department expects you to pay tax on it as you earn it, not in one lump sum when you file your return. That's advance tax. Miss an installment and you don't just delay a payment; you trigger interest that starts accruing immediately. Here's the current schedule and the interest math, verified against the tax department's own guidance.
One important update for this year: from 1 April 2026, the new Income-tax Act, 2025 replaced the Income Tax Act, 1961. Advance tax for Tax Year 2026-27 (what most people still call FY 2026-27) is now governed by the new Act. The due dates, percentages, and thresholds are unchanged — only the section numbers and some terminology have moved. We've noted both old and new numbers below so you can match whichever your CA or software refers to.
What is Advance Tax?
Advance tax is the "pay-as-you-earn" scheme under the Income Tax Act. Instead of settling your full tax bill after the financial year ends, you estimate your total income for the year and pay tax on it in installments during the year itself. It applies on top of any TDS or TCS already deducted at source — you only pay advance tax on the balance.
Under the new Income-tax Act, 2025, the core advance tax provisions sit in Sections 403 to 408 (these replace Sections 207 to 211 of the old 1961 Act). The interest provisions for default and shortfall now sit in Sections 424 and 425 (replacing the familiar Sections 234B and 234C). The rules themselves haven't changed — this is a renumbering exercise, not a policy change.
Who Must Pay
You're liable to pay advance tax if your estimated tax liability for the year, after subtracting TDS/TCS already deducted or collected, is ₹10,000 or more. This threshold is confirmed on the Income Tax Department's official FAQ and applies identically under Section 404 of the new Act and the old Section 208.
There's one notable exemption: a resident individual aged 60 or above who does not have any income from business or profession is not required to pay advance tax at all, even if their tax liability crosses ₹10,000. This carries forward from the old Act into Section 403 of the new Act.
In practice, advance tax applies to freelancers and professionals, businesses and companies, taxpayers with significant capital gains or rental/interest income, and salaried individuals whose non-salary income (stock gains, freelance side income, etc.) pushes their total liability past the threshold.
Installment Schedule
For regular assessees (individuals, firms, and companies not on the presumptive scheme), advance tax is paid in four cumulative installments — the schedule under Section 408 of the new Act, identical to the old Section 211:
| Due Date | Cumulative % of Tax Payable |
|---|---|
| On or before 15 June | Not less than 15% |
| On or before 15 September | Not less than 45% |
| On or before 15 December | Not less than 75% |
| On or before 15 March | 100% |
Each installment is cumulative — the September figure includes what you already paid in June, and so on, so you're always topping up to the required running total, not paying a flat 15%/30%/30%/25% split.
Presumptive taxation scheme: If you've opted for presumptive taxation (consolidated under Section 58 of the new Act, covering what were Sections 44AD and 44ADA under the old Act), you skip the four-installment schedule entirely. You're required to pay the entire advance tax liability in a single installment on or before 15 March. Any amount paid on or before 31 March is treated as advance tax paid within that year for all purposes.
Interest for Late or Short Payment
Two distinct interest provisions apply, and they're commonly mixed up because both charge 1% simple interest per month — but they trigger on different conditions.
Section 424 (formerly Section 234B) — interest for default in payment of advance tax. This applies at year-end. If the advance tax you actually paid is less than 90% of your assessed tax, interest at 1% per month (or part of a month) is charged on the shortfall — or on the full assessed tax if you paid no advance tax at all. Interest runs from 1 April following the tax year until the date your self-assessment tax is paid, or until regular assessment is completed, whichever is relevant.
Section 425 (formerly Section 234C) — interest for deferment of individual installments. This applies installment-by-installment during the year, and it has its own, looser tolerance thresholds — not the same 15%/45%/75%/100% figures used for the payment schedule itself:
- By 15 June: no interest if you've paid at least 12% of the tax due on returned income (even though the payment schedule target is 15%)
- By 15 September: no interest if you've paid at least 36% (against a payment target of 45%)
- By 15 December: no interest if you've paid at least 75%
- By 15 March: no interest if you've paid 100%
If you fall short of these tolerances, interest is charged at 1% per month for three months on the shortfall for each of the first three installments, and 1% for one month on the shortfall at the March installment.
Relief provision: No Section 425 interest applies to a shortfall that's attributable to capital gains, certain dividend income, or business profits that first arose during the year (income you genuinely couldn't have estimated in advance) — provided the tax on that income is paid in full by 31 March through the remaining installments.
How to Pay
- Log in to the e-filing portal at incometax.gov.in with your PAN/TAN.
- Go to e-File → e-Pay Tax → New Payment.
- Select Income Tax as the payment type and choose Minor Head 100 — Advance Tax.
- Enter the tax year, break down the amount (tax, surcharge, cess) based on your estimate.
- Pay via net banking, debit card, NEFT/RTGS, or UPI.
- Save the challan and BSR code — you'll need these when filing your return to claim credit for the advance tax paid.
Frequently Asked Questions
Can I revise my advance tax estimate during the year?
Yes. Your income estimate isn't locked in after the first installment. If your actual income turns out higher or lower than expected, adjust the amount in your next installment so your cumulative payment matches the required percentage by each due date.
What happens if I miss all four installments?
You'll owe interest under Section 425 (234C) for each missed installment's shortfall, and if your total payment by year-end is still below 90% of assessed tax, Section 424 (234B) interest kicks in as well, running until you pay the balance.
Do salaried employees need to worry about advance tax?
Only if you have income beyond your salary — capital gains, rental income, interest, freelance income — that pushes your total tax liability (net of TDS) above ₹10,000. If your salary TDS already covers your full liability, you don't need to pay separately.
Has anything about the due dates or percentages actually changed under the new Income-tax Act, 2025?
No. The due dates (15 June, 15 September, 15 December, 15 March), the cumulative percentages (15%/45%/75%/100%), the ₹10,000 threshold, and the interest mechanics are all unchanged. What changed is the section numbering and the shift from "financial year/assessment year" terminology to "Tax Year."