Advance Tax Installment Due Dates 2026-27: Complete Payment Schedule & Rules

Advance tax is the amount of tax you pay in installments during the financial year, rather than paying the entire tax liability at the time of filing your Income Tax Return. It follows the principle of "pay as you earn" and helps spread your tax burden across the year.

With the implementation of the Income Tax Act, 2025 from April 1, 2026, the advance tax framework has been carried forward with updated section numbers. This guide covers the advance tax installment due dates for FY 2026-27 (Tax Year 2026-27), who must pay, exemptions, special rules for presumptive taxpayers, and the interest consequences of missing deadlines.

Advance Tax Installment Due Dates for FY 2026-27

For the financial year 2026-27 (Tax Year 2026-27), advance tax must be paid in four installments. The due dates and cumulative payment percentages are as follows:

Verify current due dates on incometaxindia.gov.in as CBDT may issue extensions.

Understanding the Cumulative Payment Rule

The percentages mentioned above are cumulative. This means:

• By June 15, you must have paid at least 15% of your estimated total tax liability for the year.
• By September 15, the total paid (including the first installment) must be at least 45%.
• By December 15, the total paid must be at least 75%.
• By March 15, you must have paid 100% of your estimated tax liability.

Example: If your estimated tax liability for FY 2026-27 is Rs. 1,00,000, you must pay:

Who Must Pay Advance Tax?

You are required to pay advance tax if your estimated net tax liability for the financial year is Rs. 10,000 or more. Net tax liability means the total tax payable after deducting TDS (Tax Deducted at Source) and TCS (Tax Collected at Source).

Applicability

Who is Exempt from Advance Tax?

Step 1: Resident Senior Citizens (Aged 60 Years or Above)**

Resident senior citizens aged 60 years or above are exempt from paying advance tax if they do not have any income under the head "Profits and Gains of Business or Profession."

This means a senior citizen with only pension, interest income, rental income, or capital gains is not required to pay advance tax. They can pay their entire tax liability at the time of filing their ITR.

Step 2: Taxpayers with Tax Liability After TDS Below Rs. 10,000**

If your net tax liability (after considering TDS) is less than Rs. 10,000, you are not required to pay advance tax.

Special Rule for Presumptive Taxation Taxpayers

Taxpayers who have opted for the presumptive taxation scheme under Section 44AD (for businesses) or Section 44ADA (for professionals) have a simpler advance tax requirement.

Key point: Taxpayers under presumptive taxation are not required to pay advance tax in four installments. They can pay the entire 100% of their advance tax liability in a single installment on or before March 15, 2027.

Interest for Default in Advance Tax Payment

Under the Income Tax Act, 2025, failure to pay advance tax on time or paying less than the required amount attracts interest. The relevant sections are:

Section 424 (Interest for Default in Payment of Advance Tax)

Interest under Section 424 applies if the advance tax paid is less than 90% of the assessed tax liability. Interest is charged at 1% per month (or part of a month) from April 1 of the assessment year to the date of payment of the shortfall.

Section 425 (Interest for Deferment of Advance Tax Installments)

Interest under Section 425 applies if an installment is not paid by its due date or if the amount paid is less than the required percentage.

The interest is calculated as follows:

Interest is charged at 1% per month or part of a month for each installment shortfall.

How to Pay Advance Tax Online

Step-by-Step Guide

How to Pay Advance Tax Online

Follow these steps to pay your advance tax installments on the e-Filing portal

1

Login to the e-Filing Portal

Go to www.incometax.gov.in and log in using your PAN-based credentials.

Login

2

Navigate to e-Pay Tax

Click on 'e-Pay Tax' under the 'Quick Links' section on the dashboard.

e-Pay Tax

3

Select Advance Tax

Choose 'Advance Tax' as the payment type and select the relevant assessment year (AY 2027-28 for FY 2026-27).

Select Payment Type

4

Enter Payment Details

Enter the amount you wish to pay for the current installment.

Enter Amount

5

Select Payment Mode

Choose your preferred payment mode: Net Banking, Debit Card, Credit Card, or UPI.

Payment Mode

6

Make Payment and Download Challan

Complete the payment and download the challan for your records. The payment will reflect in Form 26AS after 3-5 working days.

Download Challan

Source: Income Tax Department e-Filing portal (incometaxindia.gov.in)

Common Mistakes to Avoid

Step 1: Forgetting to include all sources of income**

Many taxpayers calculate advance tax based only on salary or business income, forgetting interest income, capital gains, rental income, or other sources. This leads to underpayment and interest liability.

Step 2: Not adjusting for TDS**

Remember to deduct TDS already deducted from your income when calculating your advance tax liability. Only the net tax payable (after TDS) needs to be paid as advance tax.

Step 3: Missing the June 15 deadline**

The first installment is often overlooked. Even if you are unsure of your exact income, pay at least 15% of the estimated tax by June 15 to avoid interest.

Step 4: Not revising estimates during the year**

If your income changes during the year (for example, due to a bonus, capital gains, or additional business income), revise your advance tax estimate and top up the subsequent installments accordingly.

Step 5: Senior citizens assuming automatic exemption**

Senior citizens are exempt only if they have no business or professional income. If a senior citizen has business income, advance tax is still applicable.

Key Points to Remember

1. Advance tax is required if net tax liability exceeds Rs. 10,000.

2. Four installments: June 15 15%), September 15 45%), December 15 75%), March 15 100%).

3. Resident senior citizens 60+) without business income are exempt.

4. Presumptive taxpayers (Sections 44AD/44ADA) can pay 100% by March 15 in a single installment.

5. Interest under Sections 424 and 425 1% per month) applies for defaults or deferments.

6. Re-evaluate your tax liability before each installment to avoid shortfalls.

7. Always download the payment challan after making the payment for your records.

Where Tax Garden Helps

Calculating advance tax correctly and tracking installment due dates requires careful planning. A single missed installment or underestimation can lead to interest liability under Sections 424 and 425.

Tax Garden's CAs help you:

• Calculate your estimated tax liability accurately for the year
• Determine the correct advance tax amount for each installment
• Plan for TDS and other tax credits to reduce advance tax liability
• Ensure timely payment of all four installments
• Revise estimates if your income changes during the year
• Respond to any notices or intimations from the department

Advance Tax Installment Due Dates: Frequently Asked Questions

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

The four advance tax installment due dates for FY 2026-27 are: June 15, 2026 15%); September 15, 2026 45%); December 15, 2026 75%); and March 15, 2027 100%). Verify current due dates on incometaxindia.gov.in.

Who is required to pay advance tax?

You are required to pay advance tax if your estimated net tax liability for the financial year is Rs. 10,000 or more. Net tax liability means total tax payable after deducting TDS and TCS.

Are senior citizens exempt from paying advance tax?

Resident senior citizens aged 60 years or above are exempt from paying advance tax if they do not have any income under the head 'Profits and Gains of Business or Profession.'

What is the advance tax rule for presumptive taxpayers under Section 44AD or 44ADA?

Taxpayers under presumptive taxation schemes can pay 100% of their advance tax liability in a single installment on or before March 15 of the financial year. They are not required to pay in four installments.

What happens if I miss an advance tax installment due date?

Missing an installment due date or paying less than the required amount attracts interest under Sections 424 and 425 of the Income Tax Act, 2025 (corresponding to Sections 234B and 234C). Interest is charged at 1% per month.

What is the difference between Section 424 and Section 425?

Section 424 (formerly Section 234B) applies when advance tax paid is less than 90% of the assessed tax liability. Section 425 (formerly Section 234C) applies when an installment is not paid on time or the amount paid is less than the required percentage. Both attract interest at 1% per month.

How do I pay advance tax online?

Log in to the Income Tax e-Filing portal at www.incometax.gov.in, click on 'e-Pay Tax' under Quick Links, select 'Advance Tax,' enter the amount and assessment year, choose your payment mode, and complete the payment. Download the challan for your records.

Can I revise my advance tax estimate during the year?

Yes. If your income changes during the year (due to bonus, capital gains, or business income), you should revise your estimate and pay the additional amount in the subsequent installments to avoid interest.

What is the penalty for not paying advance tax?

There is no separate penalty, but interest under Sections 424 and 425 applies. Additionally, if advance tax paid is less than 90% of assessed tax, interest under Section 424 at 1% per month is charged from April 1 of the assessment year.

Is advance tax applicable on capital gains?

Yes. Capital gains are included in total income and must be considered when estimating advance tax liability. If capital gains are realized during the year, revise your estimate and pay the additional tax in the next installment.

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Sources: Income Tax Act, 2025, Sections 424 and 425; Income Tax Act, 1961, Sections 44AD, 44ADA, 207, 208, 209, 234B, 234C; Income Tax Department e-Filing portal (incometaxindia.gov.in); CBDT notifications on advance tax due dates. Verify current due dates, interest rates, and procedures on incometaxindia.gov.in before acting, as rules may be updated periodically. This article is general information on advance tax installment due dates and not a substitute for advice on your specific situation.