Last reviewed: 25 September 2026. Next milestone: the third instalment (75% cumulative) falls due on 15 December 2026. Advance tax is simply paying your income tax through the year as you earn, instead of all at once at the end. If your tax after TDS crosses Rs 10,000, you are expected to pay it in four instalments - and missing them quietly adds 1% per month of interest. Here is who must pay, the due dates for FY 2026-27 (tax year 2026-27 under the Income-tax Act, 2025), and how to plan instalments to minimise the interest.
Quick summary
The instalment schedule (FY 2026-27, tax year 2026-27)
| Due date | Cumulative advance tax |
|---|---|
| 15 June 2026 | At least 15% |
| 15 September 2026 | At least 45% |
| 15 December 2026 | At least 75% |
| 15 March 2027 | 100% |
Who must pay - and who need not
- You must pay if your net tax after TDS is Rs 10,000 or more - common where you have capital gains, rent, interest or business income.
- Salaried employees are usually covered by employer TDS, unless they have significant other income.
- Resident senior citizens (60+) with no business income are exempt.
- Presumptive taxpayers under section 58 (old 44AD/44ADA) can pay it all in one shot by 15 March.
For FY 2026-27 the liability to pay advance tax and the instalments are governed by sections 403 and 408 of the Income-tax Act, 2025 (old sections 207 and 211). Advance tax for FY 2025-26 (AY 2026-27), paid between June 2025 and March 2026, remains under the Income-tax Act, 1961.
How the interest works
Short-paying or missing instalments attracts interest at 1% per month - section 425 (old 234C) for late or short instalments and section 424 (old 234B) for an overall shortfall below 90% of the assessed tax. Because capital gains cannot be predicted, tax on a one-off gain is payable in the instalment of the quarter in which it arises.
A worked example
Suppose your estimated tax after TDS for FY 2026-27 is Rs 2,00,000. You pay Rs 30,000 by 15 June 2026 (15%), but by 15 September 2026 your cumulative payment is Rs 60,000 instead of Rs 90,000 (45%). The Rs 30,000 shortfall attracts interest under section 425 (old 234C) at 1% per month for three months, or Rs 900. Paying the balance so that you reach Rs 1,50,000 by 15 December 2026 and Rs 2,00,000 by 15 March 2027 keeps further interest from building up; if total payments by 31 March 2027 are below 90% of the tax assessed, section 424 (old 234B) interest also applies.
Frequently asked questions
Who has to pay advance tax?
Anyone whose total tax after TDS is Rs 10,000 or more in the year — typically those with business, capital gains, rent or other income not fully covered by TDS. Salaried people are usually covered by employer TDS unless they have extra income.
What are the advance tax due dates for FY 2026-27 (tax year 2026-27)?
15 June 2026 (15%), 15 September 2026 (45%), 15 December 2026 (75%) and 15 March 2027 (100%) of the estimated total tax.
Do salaried employees pay advance tax?
Generally no — the employer deducts TDS on salary. But if you have significant other income (capital gains, interest, rent), you may need to pay advance tax on that.
Are senior citizens exempt?
Yes. Resident senior citizens (60 and above) with no business or professional income do not have to pay advance tax.
What about presumptive taxpayers?
Businesses and professionals under presumptive taxation (section 58, old 44AD/44ADA) can pay their entire advance tax in one instalment by 15 March.
What is the interest for missing advance tax?
For FY 2026-27, interest at 1% per month applies under section 424 (old 234B) for an overall shortfall and section 425 (old 234C) for late or short instalments.
We estimate your liability and help you plan instalments to minimise interest under sections 424 and 425 (old 234B/234C).
Income Tax FilingNotice ManagementTalk to CA Somesh Chandak & Associates - we are happy to help.
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