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FY 2026-27 · Pay-as-you-earn · Income Tax Act, 2025

Advance tax: Pay your tax due as you earn it

If your tax for the year — after TDS — works out to ₹10,000 or more, you can’t wait until you file. You must pay it in instalments during the year. Miss them and interest applies automatically. Here is who pays, the dates, how to calculate it, and how to avoid a notice.

Get your advance tax sorted by a CA
Applies whenTax after TDS ≥ ₹10,000
Paid in4 instalments a year
Next due15 Sep 2026
The quick answer

Advance tax is income tax paid in the same year you earn, in four instalments, by anyone whose tax after TDS is ₹10,000 or more. Skip an instalment and interest under Sections 424 & 425 (the old 234B / 234C) is added automatically.

WhoBusiness, professionals, investors, NRIs
WhenJun · Sep · Dec · Mar
Miss it?1% / month interest
Who pays advance tax

If TDS doesn’t cover your tax, this is you

Anyone with income that isn’t fully covered by TDS — and a year-end tax bill of ₹10,000 or more — is on the hook.

BUSINESS

Business owners & firms

Companies, LLPs, firms and proprietors pay advance tax on profits not covered by TDS.

PROFESSIONALS

Freelancers & consultants

Doctors, lawyers, designers, agencies — income where clients don’t always deduct enough TDS.

INVESTORS

Traders & investors

Capital gains, dividends and interest are rarely fully covered by TDS — the gap is advance tax.

SALARIED+

Salaried with side income

Your employer’s TDS covers salary — but rent, FD interest or freelance income may not be.

You’re off the hook if: your net tax for the year is under ₹10,000, or you are a resident senior citizen (60+) with no business or professional income — you can simply pay any balance as self-assessment tax at filing.
Instalment schedule · FY 2026-27

Four dates, paid cumulatively

Each due date is a running total of your year’s tax — not a fresh slice. Figures shown are on an example estimated tax of ₹1,00,000.

  • 15 Jun 2026· passed15% cumulative₹15,000 by this date
  • 15 Sep 2026· next due45% cumulative₹45,000 total by this date
  • 15 Dec 202675% cumulative₹75,000 total by this date
  • 15 Mar 2027100% cumulative₹1,00,000 — fully paid
On presumptive tax (44AD / 44ADA)?

You skip the four instalments and pay 100% in a single shot by 15 March 2027.

How to work it out

Four steps to your number

1

Estimate your full-year income

Add up everything you expect for FY 2026-27 — business profit, professional fees, rent, interest, capital gains, dividends.

2

Compute the tax on it

Apply your regime’s slabs and any deductions you’ll claim. That’s your gross tax for the year.

3

Subtract TDS & TCS

Reduce it by tax already deducted or collected at source. What’s left is your advance tax.

4

Pay per the schedule

If the balance is ₹10,000 or more, pay it across the four instalments (or one shot if presumptive).

Quick example

Estimated tax ₹1,24,800 on ₹16 lakh income, minus ₹1,00,000 TDS = ₹24,800 advance tax, spread across the four dates. If your TDS already covers 90%+ of the bill, there may be little or nothing left to pay.

The cost of missing it

Interest is automatic — and not waivable

There is no penalty notice to argue. If you under-pay, the system simply adds interest at 1% per month when you file.

Section 424

Old 234B — shortfall for the year

If you pay less than 90% of your final tax as advance tax, 1%/month runs from 1 April of the assessment year until you clear it.

Section 425

Old 234C — missed an instalment

1%/month on the shortfall in any instalment, charged for the period of delay against that instalment.

Renumbered, not changed: from FY 2026-27 these are Sections 424 and 425 of the Income-tax Act, 2025 — the same rules that were 234B and 234C under the 1961 Act. One relief: a capital gain that arises after an instalment date can be paid in the next instalment without triggering interest for the earlier periods.
How to pay

Five minutes on the tax portal

1

Go to e-Pay Tax

On the income tax e-filing portal, open e-Pay Tax and sign in with your PAN.

2

Pick the right heads

Select Assessment Year 2027-28 and Advance Tax (100) as the payment type.

3

Enter the amount & pay

Fill the tax amount and pay by net-banking, UPI, card or at an authorised bank.

4

Save the challan

Note the BSR code and challan serial number — you’ll need them when filing.

5

Check it reflects

The payment shows up in your Form 26AS / AIS, where it reduces the tax due at filing.

Don’t wait for a 234C surprise

Let a CA project and pay your advance tax

We estimate your year’s tax, net off TDS, and schedule each instalment — so you avoid 1%-a-month interest and walk into filing season with nothing owing. Ideal if you run a business, freelance, or sell shares and property.

Plan my advance tax with a CA
Income tax calculatorEstimate your year’s tax→ Form 26AS & AISWhere your payments show→ Income tax return filingOur ITR filing service→ Capital gains taxAdvance tax on your gains→
FAQ

Advance tax, answered

Who has to pay advance tax?
Anyone whose tax for the year, after TDS and TCS, is ₹10,000 or more. In practice that means business owners, firms, freelancers and professionals, investors and traders, NRIs, and salaried people with significant income beyond their salary.
What are the advance tax due dates for FY 2026-27?
15 June 2026 (15%), 15 September 2026 (45% cumulative), 15 December 2026 (75% cumulative) and 15 March 2027 (100%). Taxpayers under presumptive taxation (44AD / 44ADA) pay 100% in a single instalment by 15 March 2027.
I’m salaried — do I need to pay advance tax?
Usually your employer’s TDS covers your salary. But if you also earn FD interest, rent, capital gains, dividends or freelance income that TDS doesn’t fully cover, and the leftover tax is ₹10,000 or more, you must pay advance tax on it.
What happens if I miss an instalment?
Interest applies automatically at 1% per month — under Section 425 (old 234C) for an instalment shortfall, and Section 424 (old 234B) if you pay less than 90% of your final tax as advance tax. It is computed when you file and cannot be waived.
Are senior citizens exempt from advance tax?
Yes. A resident senior citizen (aged 60 or above) with no income from business or profession is exempt — they can simply pay any balance as self-assessment tax while filing.
How do I pay advance tax?
Use e-Pay Tax on the income tax e-filing portal: pick Assessment Year 2027-28 and Advance Tax (100), enter the amount, and pay by net-banking, UPI or card. Save the BSR code and challan serial number — the payment reflects in your Form 26AS / AIS.
I made a capital gain after a due date — am I penalised?
No. A capital gain that arises after an instalment due date can be included in the next instalment without attracting interest for the earlier periods. The same relief applies to certain other one-off income like winnings and dividends.
Is advance tax under the old Act or the new Income Tax Act 2025?
FY 2026-27 falls under the new Income Tax Act, 2025. The mechanism is unchanged — the ₹10,000 threshold and the four instalments stay the same — but the interest sections are renumbered from 234B / 234C to 424 / 425.
File with a CA, not a portal

Stay ahead of every instalment

We project your tax, net off TDS, pay each instalment on time and reconcile it at filing — transparent pricing, real Chartered Accountants, 7-day turnaround.

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YMYL note: general information, not tax advice. Your advance tax depends on your estimated income and TDS — confirm specifics with a qualified CA before paying.