Advance Tax Due Dates for Tax Year 2026-27: Who Pays, How Much and the Interest for Missing Them

Advance tax is income tax paid during the year in which the income is earned, in instalments, instead of in one lump sum when you file the return. For most MSME owners, consultants, freelancers and landlords it is the biggest recurring tax deadline after GST — and missing it costs interest twice over, once for each short instalment and again for every month the tax stays unpaid after the year ends. This guide is for anyone working out whether they owe advance tax for tax year 2026-27, the first year under the Income-tax Act, 2025. It covers who pays, how to estimate the amount, the four due dates, the single 15 March instalment for presumptive taxpayers, the interest rules under the new sections, how to pay online, and worked examples in rupees.

Quick answer

You must pay advance tax if your tax for the year, after TDS and TCS, is ₹10,000 or more. For tax year 2026-27 the due dates are 15 June, 15 September, 15 December and 15 March, by which you must have paid 15%, 45%, 75% and 100% of the estimated tax. Presumptive businesses and professionals (old 44AD/44ADA) pay it all by 15 March 2027.

• Due dates: 15 June 2026, 15 September 2026, 15 December 2026, 15 March 2027 (section 408; old section 211)

• Exempt: resident individuals aged 60 years+ with no business or professional income

• Late instalments: 3% of the shortfall for each of the June, September and December instalments, and 1% for March (section 425; old 234C)

• Below 90% paid by 31 March: 1% a month or part of a month on the shortfall (section 424; old 234B)

• Pay online through e-Pay Tax, choosing Income-tax Act 2025 and tax year 2026-27

What advance tax is and where it sits in the new Act

The idea is "pay as you earn". Employees already pay this way through salary TDS, and many receipts — professional fees, contract payments, rent from businesses, interest — have TDS taken out at source. Advance tax covers whatever tax is left: business profit, rent from individual tenants, capital gains, interest and other income where TDS falls short of the tax.

Under the Income-tax Act, 2025, which applies from 1 April 2026, advance tax is in Part C of Chapter XIX, sections 403 to 410. Section 403 says advance tax is payable on the "current income" of the year, section 404 sets the ₹10,000 threshold, section 405 sets out how to compute it, sections 406 and 407 deal with paying on your own estimate or on an Assessing Officer's order, and section 408 sets the instalments. Interest is in sections 424 and 425. These replace sections 207 to 211, 234B and 234C of the 1961 Act, and the substance is very close to the old rules.

The year label changed too. Advance tax paid between April 2026 and March 2027 is for tax year 2026-27 — the period that would have been called "previous year 2026-27, AY 2027-28" under the old Act. The Income Tax Department's payment FAQs confirm that the last instalment for AY 2026-27 was due on 15 March 2026 under the 1961 Act, and that the first instalment for tax year 2026-27 was due on 15 June 2026 under the 2025 Act. Our guide to financial year vs assessment year explains the change in labels.

Advance tax at a glance (tax year 2026-27)

₹10,000

Pay if tax after TDS is at least

4

Instalments

15%, 45%, 75% and 100%

15 March

Presumptive taxpayers

single instalment

90%

Pay at least this by 31 March

or s.424 interest runs

Who has to pay advance tax

Section 404 makes advance tax payable when the tax payable for the year, as computed under the advance tax provisions, is ₹10,000 or more. That computation, in section 405, is the tax on your estimated income for the year at the rates in force, minus the TDS and TCS that will be deducted or collected on income included in that estimate. So the test is on the balance of tax, not on total tax.

In practice the following people usually owe advance tax:

• Proprietors, partnership firms, LLPs and companies with business profits, whether or not they keep audited accounts.
• Professionals and freelancers — consultants, doctors, designers, developers — whose clients' TDS at 10% does not cover their full tax, or whose clients are individuals who do not deduct at all.
• Landlords, especially those renting to individuals (who deduct only once a year at 2%) or to tenants below the TDS threshold.
• Salaried people with other income — interest from fixed deposits beyond what the bank deducts, rental income, capital gains from shares or property, dividends, or a side business.
• Investors and traders with capital gains, including intraday or derivatives trading income, which is business income.

Section 403(3) exempts a resident individual aged 60 years or more at any time during the tax year who has no income under the head "profits and gains of business or profession". A retired person living on pension, interest and rent pays any balance as self-assessment tax before filing the return instead. A 65-year-old who still runs a shop or practises as a consultant is not exempt.

Non-residents with Indian income above the threshold are also liable, though their TDS is usually higher and often covers the tax.

How to estimate your advance tax

Advance tax works on an estimate, and you can revise it as the year goes on. Section 406(2) lets you increase or reduce the remaining instalments to match a revised estimate.

1. Estimate total income for the year — business profit, salary, rent, interest, capital gains already realised, and any other income. Early in the year, last year's figures adjusted for known changes are a reasonable starting point.
2. Choose your regime and compute tax. The new regime under section 202 is the default for individuals and HUFs. For tax year 2026-27 its slabs are nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above, with the rebate making tax nil for total income up to ₹12 lakh (special-rate income aside). Add surcharge where applicable and 4% health and education cess.
3. Subtract expected TDS and TCS on the income you have included — salary TDS, professional-fee TDS, TDS on rent and interest. Check your AIS to see what has actually been deducted so far.
4. If the balance is ₹10,000 or more, pay it in instalments using the cumulative percentages below.

Capital gains and dividends are difficult to foresee. Section 425(4) recognises this: if a shortfall in an earlier instalment arises only because you could not estimate capital gains, dividends, income of the kind in section 2(49)(n) such as winnings, or business or professional income arising for the first time, there is no deferment interest on that shortfall — provided you pay the tax on that income in the remaining instalments, or by 31 March if no instalment is left.

Advance tax due dates and instalment percentages

Section 408(1) sets four instalments for everyone except presumptive taxpayers. The percentages are cumulative: by each date you must have paid at least the stated share of the year's advance tax, less what you paid earlier.

Section 408(3) adds a useful rule: any amount paid by way of advance tax on or before 31 March is treated as advance tax paid during that financial year. A payment made on 25 March 2027 is late for the 15 March instalment — and will cost deferment interest — but it still counts as advance tax for the section 424 test, which looks at what you paid by the end of the year.

The dates are fixed by the Act. Extensions of return or audit due dates — such as the CBDT's Circular 07/2026, which extended the audit-report and return dates for AY 2026-27 — do not move advance tax dates, and interest for late advance tax keeps running regardless.

Presumptive taxpayers: one instalment by 15 March

Section 408(2) lets a taxpayer who declares profits on the presumptive basis under section 58(2) Table Sl. No. 1 or Sl. No. 3 pay the whole of the year's advance tax on or before 15 March. Sl. No. 1 is the old section 44AD scheme for eligible small businesses — ₹3 crore (if cash receipts ≤ 5%), else ₹2 crore turnover, with profit deemed at 6% of digital receipts and 8% of the rest. Sl. No. 3 is the old section 44ADA scheme for specified professionals — gross receipts up to ₹75 lakh (if cash receipts ≤ 5%), else ₹50 lakh, with profit deemed at 50%.

Owners of goods carriages under the presumptive scheme in Sl. No. 2 (old section 44AE) are not covered by this concession; they follow the normal four-instalment schedule. And if a presumptive taxpayer pays less than the full tax by 15 March, section 425(3) charges simple interest of 1% on the shortfall — in addition to section 424 interest if less than 90% was paid by 31 March.

Interest for default and deferment

The new Act keeps the two interest charges of the old law but expresses the deferment charge as a flat percentage for each instalment instead of 1% a month for three months. The cost works out the same.

Advance tax interest — 1961 Act vs 2025 Act

Charge	1961 Act	Income-tax Act, 2025	How it is worked out
Short or late instalments (deferment)	s.234C — 1% a month for 3 months per instalment; 1 month for March	s.425 — 3% (June, Sept, Dec) and 1% (March) of the shortfall	Shortfall against 15/45/75/100% of tax due on returned income
Safe harbour	12% by 15 June, 36% by 15 September	12% by 15 June and 36% by 15 September	No deferment interest for those instalments if met
Presumptive taxpayers	s.234C — 1% on March shortfall	s.425(3) — 1% on shortfall at 15 March	Single instalment
Default (paid below 90% of assessed tax)	s.234B — 1% a month	s.424 — 1% a month or part of a month	From 1 April after the tax year until tax is paid or assessed

Short or late instalments (deferment)

1961 Act

s.234C — 1% a month for 3 months per instalment; 1 month for March

Income-tax Act, 2025

s.425 — 3% (June, Sept, Dec) and 1% (March) of the shortfall

How it is worked out

Shortfall against 15/45/75/100% of tax due on returned income

Safe harbour

1961 Act

12% by 15 June, 36% by 15 September

Income-tax Act, 2025

12% by 15 June and 36% by 15 September

How it is worked out

No deferment interest for those instalments if met

Presumptive taxpayers

1961 Act

s.234C — 1% on March shortfall

Income-tax Act, 2025

s.425(3) — 1% on shortfall at 15 March

How it is worked out

Single instalment

Default (paid below 90% of assessed tax)

1961 Act

s.234B — 1% a month

Income-tax Act, 2025

s.424 — 1% a month or part of a month

How it is worked out

From 1 April after the tax year until tax is paid or assessed

Section 425 — deferment. For each instalment date, compare what you actually paid by that date with 15%, 45%, 75% and 100% of the "tax due on returned income" (the tax on the income in your return, less TDS, TCS and specified reliefs). Interest is 3% of the shortfall at 15 June, 15 September and 15 December, and 1% of the shortfall at 15 March. No interest is charged for the June instalment if you had paid at least 12% by then, or for the September instalment if you had paid at least 36%.

Section 424 — default. If you paid no advance tax, or what you paid under sections 406 and 407 is less than 90% of the "assessed tax", interest runs at 1% a month or part of a month on the shortfall from 1 April following the tax year until the date your income is determined on processing or assessment. If you pay self-assessment tax before that, interest is worked out up to the date of payment and then only on any remaining shortfall. In practice, paying the balance with your return stops the clock.

Advance tax calendar, tax year 2026-27

15 June 2026

First instalment — 15% cumulative (12% avoids interest)

15 September 2026

Second instalment — 45% cumulative (36% avoids interest)

15 December 2026

Third instalment — 75% cumulative

15 March 2027

Fourth instalment — 100%; presumptive taxpayers pay everything

31 March 2027

Last day for a payment to count as advance tax (90% test for s.424)

1 April 2027

Section 424 interest starts on any shortfall below 90%

Worked examples in ₹

1. Consultant with TDS (new regime). Neha, a management consultant who keeps regular books, expects net income of ₹30 lakh for tax year 2026-27. Tax under the new regime: ₹20,000 (₹4–8 lakh) + ₹40,000 (₹8–12 lakh) + ₹60,000 (₹12–16 lakh) + ₹80,000 (₹16–20 lakh) + ₹1,00,000 (₹20–24 lakh) + ₹1,80,000 (30% on ₹6 lakh) = ₹4,80,000, plus 4% cess = ₹4,99,200. Her clients will deduct about ₹1,50,000 of TDS at 10%, so her advance tax is ₹3,49,200. She must have paid ₹52,380 by 15 June 2026, ₹1,57,140 by 15 September, ₹2,61,900 by 15 December and ₹3,49,200 by 15 March 2027 — instalments of ₹52,380, ₹1,04,760, ₹1,04,760 and ₹87,300.

2. The same consultant pays everything on 15 March. Neha pays nothing until 15 March 2027 and then pays the full ₹3,49,200. Section 425 interest: 3% × ₹52,380 = ₹1,571 for June, 3% × ₹1,57,140 = ₹4,714 for September, 3% × ₹2,61,900 = ₹7,857 for December, and nothing for March. Total about ₹14,142, before any rounding the department applies. No section 424 interest, because she paid 100% by 31 March.

3. Trader on presumptive taxation. Arjun runs a wholesale business with turnover of ₹2.8 crore in tax year 2026-27, almost all received through banking channels, so he qualifies for the presumptive scheme and declares 6%: ₹16.8 lakh. Tax: ₹20,000 + ₹40,000 + ₹72,000 (15% on ₹4.8 lakh) = ₹1,32,000, plus cess = ₹1,37,280. There is no TDS on his sales. He pays the full ₹1,37,280 in one instalment by 15 March 2027 and owes no interest. If he paid only ₹1,00,000 by 15 March, section 425(3) would charge 1% of ₹37,280 — ₹373 — and because ₹1,00,000 is below 90% of the tax, section 424 interest would also run from 1 April 2027 on ₹37,280 until he pays it.

4. Salaried employee with a capital gain in November. Kiran's salary TDS covers the tax on his salary. In November 2026 he sells shares and the extra tax works out to ₹40,000. He could not have foreseen the gain in June or September, so as long as he pays the ₹40,000 in the 15 December and 15 March instalments (or by 31 March), there is no deferment interest for the earlier instalments. Paying it all by 15 December is simplest.

5. Paying less than 90% by year-end. A partnership firm's tax for the year turns out to be ₹6,00,000 after TDS, but it paid only ₹4,50,000 (75%) in advance tax. It pays the ₹1,50,000 balance with its return on 31 July 2027. Section 424 interest: 1% a month for April, May, June and July on ₹1,50,000 = ₹6,000, on top of section 425 interest for the short instalments.

6. Pensioner aged 68. Mrs Rao has pension, bank interest and rent from a flat, and tax of ₹45,000 after TDS. She has no business or professional income, so she is exempt from advance tax under section 403(3) and simply pays the balance as self-assessment tax before filing her return. No interest under sections 424 or 425 applies.

How to pay advance tax online

Paying advance tax through e-Pay Tax

1. 1

   Open e-Pay Tax

   Log in to the e-filing portal and go to e-File → e-Pay Tax → New Payment, or use the no-login e-Pay Tax quick link with your PAN and mobile OTP.

   Income Tax e-filing portal
2. 2

   Choose the Act and year

   For instalments of tax year 2026-27, select the Income-tax Act, 2025 and tax year 2026-27. For older years select the 1961 Act and the assessment year.

   Tip: A wrong year is the most common reason advance tax does not show up in the return.

3. 3

   Select the type of payment

   Choose Advance Tax (minor head 100) and enter the amount — tax, surcharge and cess.

4. 4

   Pay

   Pay by net banking, debit card, UPI, RTGS/NEFT or over the counter at an authorised bank.

5. 5

   Save the challan

   Download the challan receipt and note the BSR code, date and challan serial number — you will enter them in your return. Check the payment appears in your AIS.

The payment FAQs on the e-filing portal stress the year selection: advance tax for 2025-26 was paid against AY 2026-27 under the 1961 Act, and advance tax for 2026-27 must be paid against tax year 2026-27 under the 2025 Act. If you pick the wrong one, ask your bank or the Assessing Officer for a challan correction rather than paying again.

Common mistakes

Ignoring TDS when estimating. Advance tax is the tax after TDS and TCS. Professionals who forget that their clients deduct 10% often overpay early in the year and wait for a refund. Check the AIS before each instalment.

Treating the next due date as a grace period. A missed June instalment is not "covered" by paying more in September — section 425 already charges 3% on the June shortfall. Pay as soon as you notice.

Assuming presumptive status covers everyone. Only the business scheme (old 44AD) and the professional scheme (old 44ADA) get the single 15 March instalment. Goods-transport operators under the old 44AE scheme pay four instalments.

Assuming senior citizens never pay. The exemption needs both conditions: age 60 years or more and no business or professional income.

Paying under the wrong Act or year. Payments for tax year 2026-27 go under the Income-tax Act, 2025. Payments for earlier years — including any self-assessment tax still due for FY 2025-26 — go under the 1961 Act with the assessment year.

Official links

• Income-tax Act, 2025 — Gazette textSections 403-410 (advance tax), 424, 425; s.58 presumptive
• Tax payments — FAQsWhich Act and year to select; presumptive single instalment
• e-Filing portal — e-Pay TaxPay advance tax online; view AIS
• Finance Bill 2026 — MemorandumRates for computing advance tax in tax year 2026-27

What to do next

Put the four dates — 15 June, 15 September, 15 December and 15 March — in your calendar now, and before each one compare your income so far with the TDS shown in your AIS. If most of your income suffers TDS, check that the rates are right with our guides to TDS on professional fees, TDS on contractor payments and TDS on rent, and use the TDS calculator to estimate what clients will deduct. If you are unsure which year label to use on a challan, read financial year vs assessment year.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What are the advance tax due dates for tax year 2026-27?

Advance tax for tax year 2026-27 is due in four instalments on 15 June, 15 September, 15 December and 15 March, reaching 15%, 45%, 75% and 100% of the year's estimated tax cumulatively — 15 June 2026, 15 September 2026, 15 December 2026 and 15 March 2027. Businesses and professionals on presumptive taxation pay the whole amount by 15 March 2027 instead. The schedule is in section 408 of the Income-tax Act, 2025.

Who has to pay advance tax?

Anyone whose tax for the year, after subtracting TDS and TCS, is ₹10,000 or more — businesses, professionals, freelancers, companies, landlords and salaried people with large interest, rent or capital-gains income. Resident individuals aged 60 years or more who have no business or professional income are exempt.

What is the interest for not paying advance tax?

Two kinds. Section 425 (old 234C) charges 3% of the shortfall for each of the June, September and December instalments, and 1% for March when instalments fall short. Section 424 (old 234B) charges 1% a month or part of a month from 1 April after the tax year on the unpaid tax if advance tax paid is below 90% of the assessed tax.

Do people under section 44AD pay advance tax in one instalment?

Yes. Businesses declaring presumptive income under section 58(2) Table Sl. No. 1 (old 44AD) and professionals under Sl. No. 3 (old 44ADA) pay their entire advance tax in one instalment on or before 15 March. Transporters using the goods-carriage scheme (old 44AE) do not get this concession and follow the four-instalment schedule.

Do salaried employees need to pay advance tax?

Usually not, because the employer deducts tax on salary. But if you also have interest, rent, capital gains or freelance income and the tax on it, after any TDS, comes to ₹10,000 or more, you must pay advance tax on that extra income. You can also give the details to your employer and ask for higher TDS instead.

What if I miss an advance tax instalment?

Pay as soon as you can — the next instalment date is not a deadline for the missed one. Interest under section 425 is a flat percentage of each instalment's shortfall, so paying late still stops further interest under section 424 if you reach 90% by 31 March. Any amount paid on or before 31 March counts as advance tax for that year.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.The Income-tax Act, 2025 (Act No. 30 of 2025), Gazette of India Extraordinary, 21 August 2025 — Ministry of Law and Justice (Legislative Department) · accessed 9 October 2026
2. 2.Tax payments — FAQs (e-Filing help) — Income Tax Department (e-Filing portal) · accessed 9 October 2026
3. 3.Memorandum explaining the provisions in the Finance Bill, 2026 — Ministry of Finance (Union Budget) · accessed 9 October 2026
4. 4.Section 425, Income Tax Act 2025 — interest for deferment of advance tax — TaxHeal · accessed 9 October 2026
5. 5.Section 404, Income Tax Act 2025 — EZTax · accessed 9 October 2026
6. 6.Advance Tax — due dates, who should pay, how to pay — ClearTax · accessed 9 October 2026