Income tax · Business and professionals
Who must pay advance tax, what are the due dates, and what is the interest for paying late?
Short answer
If your tax for the year after TDS is ₹10,000 or more, pay advance tax in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Presumptive taxpayers pay it all by 15 March, and resident seniors (60 or over) without business income are exempt. Late or short payment attracts interest under sections 234B and 234C, now sections 424 and 425.
Advance tax for tax year 2026-27 (FY 2026-27) is paid under the Income-tax Act, 2025: sections 403 to 408 (formerly sections 207 to 211 of the Income-tax Act, 1961). The rules are the same as before.
Who must pay
- Anyone whose tax for the year, after TDS and TCS, is ₹10,000 or more (section 404, formerly 208).
- Not a resident individual aged 60 or more at any time in the year who has no business or professional income (section 403(3), formerly 207(2)).
- Salaried people usually don't need to pay, because TDS covers their tax. They do if they have large interest, rent, capital gains or other income.
Due dates and amounts (section 408, formerly 211)
| Due date | Cumulative amount to be paid |
|---|---|
| 15 June | 15% of the advance tax |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
Presumptive taxpayers declaring business or professional income under section 58 (formerly 44AD and 44ADA) can pay the whole amount by 15 March. Tax paid by 31 March still counts as advance tax for that year.
Interest if you pay late or too little
| Interest | When | Rate |
|---|---|---|
| Section 234C (now 425): deferment | An instalment is short. No interest if you paid at least 12% by 15 June and 36% by 15 September | 1% a month on the shortfall: 3% for each of the first three instalments, 1% for the last |
| Section 234B (now 424): shortfall | Advance tax paid is less than 90% of the tax assessed | 1% a month from 1 April after the year until the tax is paid or assessed |
If the shortfall is because of capital gains, dividends, winnings such as lottery prizes, or business income arising for the first time, there is no 234C interest for the earlier instalments, provided you pay the tax on that income in the remaining instalments or by 31 March.
How to pay
On the e-filing portal, use e-Pay Tax, choose the year and Advance Tax, and pay through net banking, UPI, card or at a bank. Keep the challan, which you will need for the return. Estimate your instalments with the advance tax calculator.
Legal basis
- Sections 403 to 408, Income-tax Act, 2025 (advance tax for tax year 2026-27 onwards; formerly sections 207 to 211, Income-tax Act, 1961)
- Sections 424 and 425, Income-tax Act, 2025 (interest; formerly sections 234B and 234C)
Official sources
Related questions
- Which is better for me: the old or the new tax regime?For most individuals with income up to about ₹15 lakh and modest deductions, the new regime gives lower tax: income up to ₹12 lakh is effectively...
- Which ITR form should I file?It depends on who you are and what income you have. ITR-1 is for resident individuals with salary, up to two house properties and other income,...
- Has anything changed for salaried taxpayers under the Income-tax Act, 2025?Very little in substance. For tax year 2026-27 the slabs, the ₹75,000 standard deduction, the ₹12 lakh tax-free limit of the new regime and the choice...