Who must pay advance tax, the 15/45/75/100% instalment calendar, how to compute the quarterly amount after TDS, interest under sections 234B and 234C (and their Income-tax Act, 2025 counterparts), and the single March instalment for presumptive filers.
By Kanoons Editorial Team · 13 min read · Last verified 2026-10-06
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Summary
If your estimated income-tax for the year, after TDS and TCS, is ₹10,000 or more, you must pay advance tax in instalments rather than waiting for the return. Non-presumptive taxpayers follow the classic calendar — 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March. Presumptive filers under 44AD / 44ADA / 44AE pay once, by 15 March. Miss the cadence and interest under sections 234B and 234C (Income-tax Act, 1961) — or sections 424 and 425 of the Income-tax Act, 2025 for tax year 2026-27 onwards — stacks automatically. Verified against the Income Tax Department Tax Payments FAQ on 6 October 2026.
- Liability threshold: estimated tax after TDS/TCS ≥ ₹10,000 (s.208 / s.404).
- Four cumulative instalments for ordinary assessees (s.211 / s.408).
- Presumptive scheme → single instalment by 15 March (s.211(1)(b) / s.408(2)).
- Interest: 234C/425 for instalment deferment; 234B/424 where advance tax < 90% of assessed tax.
- Transition: FY 2025-26 advance tax → 1961 Act; FY 2026-27 advance tax → 2025 Act (ITD FAQ).
- Service path: Advance & Self-Assessment Tax.
Who must pay advance tax
You are in scope when the tax payable on estimated current income, reduced by TDS/TCS and reliefs already available, is ₹10,000 or more. Typical triggers:
- Freelancers and consultants whose clients deduct little or no TDS
- Business owners with profits not fully covered by withholding
- Investors with interest, rent, capital gains or dividend not fully taxed at source
- Companies and firms with estimated tax above the threshold
A salaried employee whose employer’s TDS already covers at least 90% of the year’s tax is usually not forced into advance tax for the residual — but side income (interest, freelancing, capital gains) often pushes the residual above ₹10,000. Recompute mid-year; do not assume Form 16 alone is enough.
Senior citizens (resident individual aged 60+) who do not have income chargeable under “Profits and gains of business or profession” are exempt from advance tax under the 1961 Act framework that still governs FY 2025-26 filings — confirm the parallel carve-out under the 2025 Act for tax year 2026-27 before relying on it.
Instalment calendar
| Due date | Cumulative amount payable (non-presumptive) |
|---|---|
| 15 June | Not less than 15% of estimated advance tax |
| 15 September | Not less than 45% (net of earlier payments) |
| 15 December | Not less than 75% (net of earlier payments) |
| 15 March | 100% (net of earlier payments) |
| On or before 31 March | Still treated as advance tax for that financial year |
Presumptive assessees (44AD / 44ADA / 44AE under the 1961 Act; mapped to section 58 in ITD’s 2025-Act FAQs) skip the June–December ladder and pay the whole amount on or before 15 March.
Track the dates on our Due Dates calendar and pair them with ITR Filing once books close.
How to compute each instalment
1. Estimate total income for the full financial year (all heads). 2. Apply the tax regime you expect to use (new regime is the default — see New vs old tax regime and Old or new regime FY guide). 3. Reduce by rebate / surcharge / cess as applicable, then subtract TDS and TCS already deducted or reasonably expected. 4. If the remainder is ≥ ₹10,000, that remainder is your advance-tax base. 5. Apply the cumulative percentage for the upcoming due date and subtract what you have already paid as advance tax.
Revise the estimate before every due date. Over-paying is recoverable as a refund or credit; under-paying is what generates interest.
Illustrative (not a quote): estimated tax ₹2,00,000; TDS ₹80,000 → advance-tax base ₹1,20,000. By 15 September you need at least 45% × ₹1,20,000 = ₹54,000 cumulative. If you paid ₹18,000 in June, the September instalment is ₹36,000.
Interest under 234B and 234C (and 424 / 425)
| Provision (1961 → 2025) | Trigger | Rate shape (ITD FAQ) |
|---|---|---|
| 234C → 425 | Shortfall against the instalment schedule | 3% on June/Sep/Dec shortfalls (1%/month × 3 months); 1% on March shortfall; June/Sep safe harbour if ≥12%/36% of tax due on returned income |
| 234B → 424 | Advance tax paid < 90% of assessed tax | 1% per month (or part) from 1 April of the assessment / tax year until payment |
Capital gains, lottery / crossword income, first-time business income and dividend income have specific shortfall reliefs if the tax on that income is paid in the remaining instalments or by 31 March — do not invent a blanket exemption; check the live section text for your facts.
Mid-article CTA: Get a quarterly advance-tax schedule → Cross-sell: Tax Planning, Bookkeeping.
Payment hygiene on the portal
- Use e-Pay Tax on incometax.gov.in.
- For income of FY 2025-26, select AY 2026-27 under the 1961 Act challan path.
- For income of FY 2026-27, select Tax Year 2026-27 under the 2025 Act path — ITD’s FAQ warns that wrong-year selection misposts credit.
- Archive the challan / CRN with the working papers for each instalment.
- Reconcile payments against Form 26AS / AIS before filing the return (see related ITR articles below).
Regulatory watch — Act transition (October 2026)
The Income-tax Act, 2025 applies to income of financial year 2026-27 onwards. ITD’s published Tax Payments FAQ (last reviewed on the portal as of verification) is explicit: no policy change to advance-tax mechanics, but section numbers and challan Act-selection changed. Prefer that FAQ and the live Act text over secondary blogs when communicating due dates to clients.
Common failure modes
- Ignoring side income because salary TDS “looks enough”
- Paying 15% of *gross tax* instead of tax after TDS
- Presumptive filers splitting instalments (or worse, paying nothing until July)
- Selecting the wrong Act / Tax Year on e-Pay Tax during the 2026 transition
- Forgetting to top up after a large capital-gain month
Related reading on this site
- ITR due dates and penalties
- What happens if you miss the ITR deadline
- Which ITR form to file
- Presumptive taxation 44AD / 44ADA
Primary sources
- Income Tax Department — Tax Payments FAQ (threshold ₹10,000; Act mapping; presumptive single instalment; interest rates)
- Income Tax Department — Tax Payments help
- Income-tax Act, 1961 — sections 207–211, 234B, 234C
- Income-tax Act, 2025 — sections 403–408, 424, 425 (as mapped in ITD FAQs)
- incometaxindia.gov.in — Acts & forms hub
Disclaimer
This guide is for general informational purposes only and is not legal, financial or tax advice. Kanoons Law and Tax Consultants Private Limited is a consultancy platform and is not a law firm or accounting firm. No professional relationship is created by reading this page. Confirm the live Act, Rules and e-filing portal labels for your tax year, and consult an independently qualified professional before acting. See our Disclaimer.
Frequently asked questions
When is advance tax payable in India?
Under section 208 of the Income-tax Act, 1961 (section 404 of the Income-tax Act, 2025), advance tax is payable when the estimated tax liability for the year, after TDS/TCS credit, is ₹10,000 or more. The Income Tax Department’s Tax Payments FAQ confirms the ₹10,000 threshold is unchanged under the 2025 Act.
What are the advance tax due dates and percentages?
For non-presumptive assessees, cumulative instalments are: not less than 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March (section 211 of the 1961 Act / section 408 of the 2025 Act). Amounts paid by 31 March still count as advance tax for that financial year.
Do presumptive taxpayers pay four instalments?
No. Assessees declaring profits under the presumptive scheme (sections 44AD / 44ADA / 44AE of the 1961 Act; section 58 under the 2025 Act mapping used in ITD FAQs) must pay the whole advance tax by 15 March of the financial year (section 211(1)(b) / section 408(2)).
What interest applies if I miss or underpay an instalment?
Section 234C (section 425 of the 2025 Act) charges interest for deferment of instalments — commonly expressed as 1% per month for three months on June/September/December shortfalls (3% each) and 1% on the March shortfall, with the June/September safe-harbour of 12%/36%. Section 234B (section 424) charges 1% per month from 1 April where advance tax paid is less than 90% of assessed tax. ITD confirms the rates are unchanged under the new Act.
Which Act applies to FY 2025-26 vs FY 2026-27 advance tax?
Per the Income Tax Department Tax Payments FAQ (verified October 2026): the 15 March 2026 instalment for FY 2025-26 / AY 2026-27 is governed by the Income-tax Act, 1961. Advance tax on income of FY 2026-27 (first instalment 15 June 2026) is governed by the Income-tax Act, 2025. Select the correct AY / Tax Year on e-Pay Tax so credit posts to the right year.