Advance tax for Tax Year 2026-27: who must pay, the 4 due dates, how to pay, and the interest if you miss
You must pay advance tax if your tax for the year, after TDS, is ₹10,000 or more. Pay it in 4 instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Most salaried people don't need to, because the employer's TDS covers their tax. You need it if you also have interest, rent, capital gains, freelance or business income. Resident senior citizens (60+) with no business income are exempt. Missed or short payments attract 1% a month interest (old sections 234B/234C, now sections 424/425 of the 2025 Act). Pay online at incometax.gov.in → e-Pay Tax.
Key facts Last verified: 9 Oct 2026
| Item | Details | Source |
|---|---|---|
| Who must pay | Tax payable for the year is ₹10,000 or more (section 404, Income-tax Act 2025; unchanged) | Income Tax Dept — Tax Payments FAQ |
| Policy change under new Act | None; same system, easier wording (formula in section 405) | Income Tax Dept — Tax Payments FAQ |
| Presumptive income (section 58) | Whole advance tax in one instalment by 15 March (section 408(2)) | Income Tax Dept — Tax Payments FAQ |
| Interest — not paid / under 90% | 1% per month or part (section 424, was 234B) | Income Tax Dept — Tax Payments FAQ |
| Interest — instalments deferred | Section 425 (was 234C) | Income Tax Dept — Tax Payments FAQ |
| Senior citizens | Resident senior citizen with no business or profession income need not pay advance tax | Income Tax Dept — Senior Citizens (AY 2026-27) |
| Which year to select | Tax Year 2026-27 for income from April 2026 to March 2027 | Income Tax Dept — Tax Payments FAQ |
Rahul is a software engineer in Pune. His employer deducts TDS on his salary, so he never thought about advance tax. This year he also earns about ₹4 lakh from weekend freelance work, and nobody deducts tax on that. His extra tax for the year comes to around ₹1.2 lakh. If he waits until July to pay it with his return, he will owe interest for several months. Advance tax means paying it during the year, in four parts.
Do you need to pay advance tax?
| Your situation | Advance tax? |
|---|---|
| Only salary, and your employer's TDS covers your full tax | No |
| Salary plus FD interest, rent, capital gains or freelance income, and tax left after TDS is ₹10,000 or more | Yes, on the part not covered by TDS |
| Business or profession (regular books) | Yes, if tax is ₹10,000 or more |
| Presumptive business income (old 44AD/44ADA, now section 58) | Yes, in one go by 15 March |
| Resident senior citizen (60+) with no business or profession income | No, exempt |
The 4 due dates (individuals)
| Pay by | Total paid so far (at least) |
|---|---|
| 15 June | 15% of the year's tax |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
Rahul's example (estimated tax not covered by TDS: ₹1,20,000):
| By | Total paid | This instalment |
|---|---|---|
| 15 June | ₹18,000 | ₹18,000 |
| 15 September | ₹54,000 | ₹36,000 |
| 15 December | ₹90,000 | ₹36,000 |
| 15 March | ₹1,20,000 | ₹30,000 |
Missed an earlier date? Pay the shortfall as soon as possible. Interest runs only until you pay. See all upcoming dates on our deadlines tracker.
How to pay advance tax online
- Go to incometax.gov.in → e-Pay Tax (you can also pay after logging in).
- Enter your PAN and mobile number, and verify with OTP.
- Choose Income Tax, then the year: Tax Year 2026-27 for income earned from April 2026 to March 2027.
- Select the type of payment: Advance Tax.
- Enter the amount and pay by net banking, debit card, UPI or another payment gateway option.
- Save the challan receipt. Check after a few days that it shows in your tax statement, and claim it in your return.
Pick the right year. The Income Tax Department warns that choosing the wrong year (AY 2026-27 instead of Tax Year 2026-27) sends your payment to the wrong year, and your credit won't match. Advance tax for income earned now (April 2026 – March 2027) is for Tax Year 2026-27.
Interest if you pay late or too little
- Section 424 (was 234B): if you paid no advance tax or less than 90% of the tax due, interest is 1% per month or part of a month.
- Section 425 (was 234C): interest for deferring an instalment, meaning paying less than the required share by a due date.
The rates and rules are the same as before. Only the section numbers changed. See old vs new section numbers.
Senior citizens: if you are a resident aged 60+ and have no business or profession income, you don't have to pay advance tax at all. Pay any balance as self-assessment tax before filing your return. If your total tax is nil, see Form 121 (was 15G/15H) to stop TDS on your FD interest.
Frequently asked questions
Who should pay advance tax?
Anyone whose tax for the year, after TDS, is ₹10,000 or more. Resident senior citizens without business or profession income are exempt.
What are the advance tax due dates for 2026-27?
15 June (15%), 15 September (45%), 15 December (75%) and 15 March (100%) for Tax Year 2026-27. Presumptive-income businesses pay everything by 15 March.
Do salaried employees need to pay advance tax?
Usually not, because the employer deducts TDS. You need to if other income (interest, rent, capital gains, freelance) leaves ₹10,000 or more of tax uncovered.
What is the interest for not paying advance tax?
1% per month or part of a month, under section 424 (old 234B) for non-payment or payment under 90%, and section 425 (old 234C) for deferred instalments.
Did the advance tax rules change under the Income-tax Act 2025?
No policy change. The ₹10,000 threshold, due dates and interest rates are the same; only section numbers changed.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- Tax Payments FAQ (Income-tax Act, 2025)Threshold, interest, which year to select
- Senior Citizens (AY 2026-27)Advance tax exemption for seniors
- Income Tax e-Filing — e-Pay TaxPay advance tax online
- Income Tax helplinee-filing and payment queries
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