Pay Advance Tax Online: The Complete e-Pay Tax Walkthrough
Key Takeaways
- Go to incometax.gov.in, open e-Pay Tax, enter your PAN and mobile, and verify the OTP. No login is needed.
- Select Income Tax (0021), Assessment Year 2027-28 for FY 2026-27, and minor head Advance Tax (100).
- Enter the amount, pay by Net Banking, UPI, debit card, or NEFT/RTGS, then download the CIN challan and verify it later in AIS and Form 26AS.
Advance tax is income tax paid during the year you earn it, not after. If your net tax liability for FY 2026-27 crosses Rs 10,000, the law expects you to deposit it in installments. This guide is the payment walkthrough: the exact clicks inside the income tax portal e-Pay Tax service to deposit advance tax under the correct assessment year and head, save the challan, and confirm it has reached your tax credit statement.
For the four installment dates and how each one is calculated, see our companion guide on advance tax due dates for FY 2026-27. For the general e-Pay Tax flow across all tax types, see how to pay income tax online with Challan 280.
Looking for expert help with advance tax payment and quarterly challan support? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
Who Must Pay Advance Tax
Section 208 of the Income Tax Act makes advance tax mandatory for any assessee whose estimated net tax liability for the year is Rs 10,000 or more. Section 207 fixes the charge and the scope. "Net" liability is your estimated tax for the year reduced by TDS already deducted, TCS collected, and eligible credits. If TDS on your salary or professional fees already covers almost everything and the balance is below Rs 10,000, you are outside the advance tax net.
There is one important relief. A resident senior citizen (60 years or above) who has no income chargeable under the head profits and gains of business or profession is exempt from paying advance tax under the proviso to Section 207. Such a taxpayer can settle the whole liability as self-assessment tax before filing the return. A senior citizen running a business or profession does not get this relief.
To estimate the liability you are about to pay, work out your tax using the applicable income tax slab rates for FY 2026-27 (AY 2027-28), then subtract expected TDS and TCS. The figure that remains is what you spread across the four installments.
A Quick Word on the Schedule
Advance tax for non-presumptive taxpayers is paid in four installments with cumulative targets of 15%, 45%, 75%, and 100% by June 15, September 15, December 15, and March 15. Presumptive taxpayers under Section 44AD or 44ADA pay the full amount in a single shot by March 15. We will not re-explain the math here; the due dates guide covers the percentages and the Section 234C interest each missed installment attracts. This article focuses on the act of paying.
Before You Start: Two Codes You Must Get Right
The income tax payment system (now on the TIN 2.0 backend, accessed through the e-Pay Tax service that replaced the old standalone Challan 280 page) routes your money using two codes. Getting either one wrong sends your payment to the wrong ledger.
| Field | What it means | Value for advance tax |
|---|---|---|
| Major head | The category of taxpayer | 0021 Income Tax (Other than Companies) for individuals, HUFs, firms, LLPs. 0020 Corporation Tax only for companies. |
| Minor head | The nature of the payment | 100 Advance Tax |
For an individual, freelancer, or non-corporate firm, the combination is major head 0021 + minor head 100. A company pays the same minor head 100 but under major head 0020. Choosing minor head 300 (Self-Assessment Tax) by mistake means the amount is not treated as advance tax, which can still trigger Section 234C interest even though you paid on time.
Step-by-Step: Paying Advance Tax Online
You do not need to log in to deposit advance tax. The pre-login route is faster and asks only for your PAN and a mobile number. Logging in is useful if you want pre-filled details and a record of past challans in one place. Both routes reach the same payment screen.
Step-by-Step Guide
Depositing Advance Tax via e-Pay Tax on incometax.gov.in
Seven steps : the assessment year and minor head are where most errors happen
Open e-Pay Tax
Go to incometax.gov.in and click e-Pay Tax under Quick Links. To use the pre-login route, you do not sign in. To use the post-login route, log in with your PAN and password, then open e-File then e-Pay Tax.
Portal EntryEnter PAN and Verify OTP
Enter your PAN, confirm it twice, and enter the mobile number for the OTP. The portal shows your masked name for confirmation before it sends the OTP. Verify the name matches your PAN.
VerificationSelect Income Tax and Choose Assessment Year
On the New Payment screen, pick the Income Tax tile (major head 0021 for non-corporate). Then select Assessment Year 2027-28 for advance tax of FY 2026-27. The AY is always one year ahead of the financial year.
Tax Type and AYSelect Minor Head 100 Advance Tax
Under Type of Payment, choose (100) Advance Tax. Do not pick (300) Self-Assessment Tax. This single selection is what classifies the deposit as advance tax in your ledger.
Minor HeadEnter the Breakup of Tax
Enter the amount under the Tax field. For a pure advance tax installment there is normally no interest or fee component, so the other rows stay zero. The portal totals the figure for you.
AmountChoose a Payment Mode and Pay
Select Net Banking, Debit Card, UPI, or Pay at Bank Counter, or generate an NEFT/RTGS mandate to push from your bank. Net Banking and UPI confirm instantly; NEFT/RTGS may take a few hours to reflect.
PaymentDownload the CIN Challan
On success the portal generates a challan carrying the CIN (Challan Identification Number): BSR code, payment date, and challan serial number. Download and save the PDF. You need the CIN when you fill Schedule IT in your ITR.
ReceiptSource: Income Tax e-filing portal e-Pay Tax service, incometax.gov.in : Sections 207, 208, 211 of the Income Tax Act
Choosing the Right Assessment Year
This is the field that catches most taxpayers. The assessment year is always the year after the financial year in which the income is earned. Advance tax for income of FY 2026-27 is paid under AY 2027-28. If you select AY 2026-27 by habit, your money lands against the previous year and will not show against the installment you intended to cover.
Picking the Payment Mode
The e-Pay Tax service supports several modes:
- Net Banking: through any authorized bank. Instant confirmation.
- UPI: pay from any UPI app linked to your bank. Instant confirmation.
- Debit Card: through the payment gateway, near instant.
- NEFT/RTGS: generate a mandate form on the portal and transfer from your bank account. Useful for large amounts; takes a few hours to reflect.
- Pay at Bank Counter: generate the challan online and pay with cash, cheque, or demand draft at an authorized bank branch. Suited to taxpayers not mandated to pay electronically.
There is no convenience charge on Net Banking, UPI, or the over-the-counter route. The portal displays any gateway charge before you confirm, so you can review the total first.
Saving and Verifying the Challan
The challan is not paperwork to discard. It is the proof of payment your ITR utility relies on, so keep the PDF and note the CIN.
A successful payment generates a CIN made of three parts:
- BSR Code: the 7-digit code of the bank branch that processed the payment.
- Date of Deposit: the date the bank accepted the payment.
- Challan Serial Number: a 5-digit number assigned by the bank.
Advance tax paid through e-Pay Tax flows into your tax records and appears under Form 26AS (TRACES, tdscpc.gov.in) and the Annual Information Statement (AIS) on the income tax portal, usually within a few days of deposit. When you file your return, the advance tax challans are picked into Schedule IT, and the credit reduces the balance you owe. Always reconcile the challans in your AIS against your own challan PDFs before filing so no installment is missed in the prefill.
Looking for expert help with advance tax challan reconciliation and AIS verification? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
If You Pick the Wrong AY or Head
Mistakes are fixable, and a duplicate payment is rarely the answer.
- Wrong assessment year or wrong minor head: the e-Pay Tax portal allows a challan correction request for the assessment year, major head, and minor head fields within the window the portal prescribes. Log in, open Services then Challan Correction, select the paid challan, and submit the corrected field for processing. Where the online window has closed, the jurisdictional Assessing Officer can carry out the correction on request.
- Wrong amount: you cannot reduce a paid challan. If you overpaid, the excess is adjusted at assessment or refunded after you file. If you underpaid an installment, deposit the shortfall in a fresh challan under the same AY and minor head 100.
Do not rush to pay again before attempting a correction. A second payment under the correct AY without correcting or tracking the first one leaves money parked against the wrong year, which then has to be chased through a separate refund or adjustment.
Section 234B and 234C if You Underpay or Miss
Paying online on time is only half the discipline. The amount has to be adequate.
- Section 234C charges simple interest at 1% per month on the shortfall in any individual installment, for the deferral period attached to that installment. Pay an installment short and this interest runs even if you eventually pay the rest.
- Section 234B charges simple interest at 1% per month from April 1 of the assessment year until the date of payment, where the advance tax actually paid for the year is less than 90% of the assessed tax.
Both are simple interest and both stack on a single underpaid year, which is why estimating the installment correctly matters as much as the payment mechanics. Paying advance tax accurately and on time is the cleanest way to reduce exposure to this interest.
Frequently Asked Questions
Do I need to log in to pay advance tax online?
No. The e-Pay Tax service on incometax.gov.in works pre-login. You enter your PAN, confirm your name, and verify a mobile OTP. Logging in is optional and only adds pre-filled details and a record of past challans.
Which minor head and major head do I select for advance tax?
Select minor head 100 Advance Tax. For individuals, HUFs, firms, and LLPs the major head is 0021 Income Tax (Other than Companies). Companies use major head 0020 Corporation Tax with the same minor head 100.
Which assessment year do I choose for advance tax of FY 2026-27?
Assessment Year 2027-28. The assessment year is always one year after the financial year in which the income is earned, so advance tax for FY 2026-27 is deposited under AY 2027-28.
Are senior citizens required to pay advance tax?
A resident senior citizen aged 60 or above who has no income under the head profits and gains of business or profession is exempt from advance tax under the proviso to Section 207. They can pay the full amount as self-assessment tax before filing. Senior citizens with business income are not exempt.
How do I confirm the payment reached the department?
Every successful payment generates a CIN (BSR code, date of deposit, and challan serial number). Download the challan PDF, then check that the amount appears in your Annual Information Statement and Form 26AS within a few days. These figures feed Schedule IT of your ITR.
I selected the wrong assessment year. What should I do?
Do not pay again immediately. Use Challan Correction under Services on the e-Pay Tax portal to correct the assessment year, major head, or minor head within the prescribed window. If the online window has closed, request the correction from your jurisdictional Assessing Officer.
How Tax Garden Helps
The mechanics above are simple once you have done them. The harder part is estimating each installment correctly so Section 234B and 234C interest do not creep in. Tax Garden projects your annual liability, calculates each quarterly installment, prepares the challan with the correct assessment year and head, and reconciles every payment against your AIS before your ITR is filed. That keeps the documentation clean and the interest off your books.
Sources: Income Tax Act, Sections 207, 208, and 211 (charge, liability, and installments of advance tax) and Sections 234B and 234C (interest for default and deferment); the proviso to Section 207 on the senior citizen exemption; and the Income Tax e-filing portal e-Pay Tax service on incometax.gov.in, including its challan correction facility and the Form 26AS and AIS tax credit statements.