Advance Tax Due Dates FY 2026-27: Schedule, Calculation & How to Pay
Advance tax is the system where you pay income tax in instalments during the financial year rather than in a lump sum at the end. Missing advance tax due dates triggers interest under Sections 234B and 234C. This guide covers all advance tax due dates for FY 2026-27 and FY 2025-26, who must pay, how to calculate, and how to pay online.
⚡ Advance Tax Due Dates FY 2026-27
- 15 June 2026 – Pay 15% of estimated annual tax
- 15 September 2026 – Pay 45% (cumulative) of estimated annual tax
- 15 December 2026 – Pay 75% (cumulative) of estimated annual tax
- 15 March 2027 – Pay 100% (full) of estimated annual tax
What is Advance Tax?
Advance tax (also called “pay as you earn” tax) is income tax paid in advance – during the financial year in which the income is earned – rather than after the year ends. The Income Tax Act mandates advance tax payment if your estimated tax liability for the year exceeds ₹10,000 (after deducting TDS).
This applies to all taxpayers – salaried individuals with additional income, freelancers, business owners, professionals, and companies. If your only income is salary and TDS is correctly deducted by your employer, you are generally exempt from advance tax.
Advance Tax Due Dates FY 2026-27 (AY 2027-28)
| Instalment | Due Date | Minimum % of Annual Tax to Pay |
|---|---|---|
| 1st Instalment | 15 June 2026 | 15% |
| 2nd Instalment | 15 September 2026 | 45% (cumulative) |
| 3rd Instalment | 15 December 2026 | 75% (cumulative) |
| 4th Instalment (Final) | 15 March 2027 | 100% (full tax) |
Advance Tax Due Dates FY 2025-26 (AY 2026-27)
| Instalment | Due Date | Cumulative % Payable |
|---|---|---|
| 1st Instalment | 15 June 2025 | 15% |
| 2nd Instalment | 15 September 2025 | 45% |
| 3rd Instalment | 15 December 2025 | 75% |
| 4th Instalment (Final) | 15 March 2026 | 100% |
Who Must Pay Advance Tax?
You must pay advance tax if your net tax liability after TDS exceeds ₹10,000 in a financial year. This applies to:
- Salaried individuals with additional income from interest, rent, capital gains, or freelancing
- Self-employed professionals – doctors, CA, architects, consultants
- Freelancers and gig workers whose TDS may not be deducted or is insufficient
- Business owners (proprietors, partners, directors)
- Investors with significant capital gains from stocks, mutual funds, or property
- Companies and firms – all companies must pay advance tax regardless of tax amount
Who is Exempt from Advance Tax?
- Senior citizens (60+ years) who do not have any income from business or profession – they are exempt under Section 207
- Individuals whose only income is salary (employer deducts TDS via Form 16) and tax liability after TDS is below ₹10,000
How to Calculate Your Advance Tax
Follow these steps to estimate your advance tax for FY 2026-27:
- Estimate total income for the year: salary, rent, capital gains, business profit, interest, etc.
- Deduct eligible deductions: Standard deduction (₹75,000 under new regime / ₹50,000 under old regime), 80C, 80D, HRA, home loan interest, etc.
- Compute tax on net taxable income using the applicable tax slab rates
- Subtract TDS already deducted/expected for the year
- If net tax liability > ₹10,000, you must pay advance tax in instalments
📌 Example Calculation (FY 2026-27, New Tax Regime)
- Gross salary: ₹15,00,000 | Standard deduction: ₹75,000 | Taxable income: ₹14,25,000
- Tax on ₹14,25,000: ₹4 lakh @0% = ₹0 + ₹4 lakh @5% = ₹20,000 + ₹4 lakh @10% = ₹40,000 + ₹2.25 lakh @15% = ₹33,750 = Total tax ₹93,750 + 4% cess = ₹97,500
- TDS already deducted by employer (estimated): ₹90,000
- Net advance tax liability: ₹97,500 − ₹90,000 = ₹7,500 → below ₹10,000 → No advance tax needed
Interest for Non-Payment / Short Payment of Advance Tax
| Section | Situation | Interest Rate |
|---|---|---|
| Section 234B | Advance tax paid is less than 90% of total tax liability | 1% per month on shortfall from April to date of assessment/payment |
| Section 234C | Instalment not paid / short paid by due date | 1% per month for 3 months on the shortfall per instalment |
How to Pay Advance Tax Online (Step-by-Step)
- Go to incometax.gov.in → e-Pay Tax
- Enter your PAN and mobile number → Get OTP verification
- Select Assessment Year 2027-28 (for FY 2026-27 payments)
- Select payment type: “Advance Tax” (100)
- Enter the tax amount and proceed to pay via net banking, UPI, credit/debit card, or NEFT/RTGS
- Save the Challan 280 receipt – you’ll need it while filing your ITR
Advance Tax for Presumptive Taxation (Section 44AD / 44ADA)
Businesses and professionals opting for presumptive taxation under Sections 44AD or 44ADA have a single advance tax instalment due date:
- Single instalment by 15 March 2027 (for FY 2026-27) – 100% of tax liability in one payment
- This replaces the four-instalment schedule applicable to other taxpayers
- Missing this date triggers interest under both Sections 234B and 234C
FAQs on Advance Tax Due Dates
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