Last reviewed: 6 August 2026. Next milestone: the second instalment (45% cumulative) falls due on 15 September 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 AY 2026-27, and how to avoid the interest.
Quick summary
The instalment schedule (AY 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 (44AD/44ADA) can pay it all in one shot by 15 March.
How the interest works
Short-paying or missing instalments attracts interest at 1% per month - Section 234C for late instalments and Section 234B for an overall shortfall (renumbered as Sections 424/425 under the Income-tax Act, 2025). Because capital gains cannot be predicted, tax on a one-off gain is payable in the instalment of the quarter in which it arises.
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 AY 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 (44AD/44ADA) can pay their entire advance tax in one instalment by 15 March.
What is the interest for missing advance tax?
Interest at 1% per month applies under Sections 234B and 234C (Sections 424/425 of the Income-tax Act, 2025) for short or late payment.
We estimate your liability, plan the instalments and keep you free of 234B/234C interest.
Income Tax FilingNotice ManagementTalk to CA Somesh Chandak & Associates - we are happy to help.
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