Advance Tax FY 2026-27: Due Dates, How to Calculate, Pay Online & Penalty

As per the Income Tax Act, taxpayers with a tax liability exceeding Rs. 10,000 after TDS/TCS for the year, are required to pay advance tax in installments rather than a one time lump sum payment. However, taxpayers opting for the presumptive taxation are required to pay 100% of their advance tax in a single installment before the financial year end. 

Any non-payment or short-payment of advance tax will attract interest at the rate of 1% per month each under sections Sections 424 and 425 of the Income-tax Act, 2025 (formerly Sections 234B and 234C of the Income-tax Act, 1961).  

Advance Tax Payment - FY 2026-27

• The due date to pay the 1st installment of advance tax payent for FY 2026-27 is 15th June 2026. 
• Taxpayers are required to pay at least 15% of their total tax liability in the 1st installment. 
• The subsequent advance tax payment dates are 15th September 2026, 15th December 2026, and 15th March 2027. 

What is Advance Tax?

Advance tax is a ‘pay-as-you-earn’ scheme of income tax, where taxpayers pay off their tax liability for the year in four installments rather than a one time lump sum payment during ITR filing. The provisions related to advance tax are covered under section 403 to section 410 of the Income Tax Act, 2025.

The taxpayer is required to estimate their annual earnings and pay taxes in installments through the financial year, ensuring that the government maintains a steady revenue stream. However, not every taxpayer is liable to pay advance tax. 

Advance Tax Eligibility - Who Should Pay Advance Tax

Any taxpayer (including salaried individuals, freelancers, and businesses) whose estimated tax liability for the financial year exceeds Rs. 10,000 is required to pay advance tax as per the provisions of the Income Tax Act. However, senior citizen taxpayers (aged 60 years and above) are exempt from advance tax payment if they do not have business or professional income. 

In case of taxpayers receiving payments after TDS/TCS, advance tax payment is applicable when their additional income such as capital gains, rental income, or interest income result in a tax liability exceeding Rs.10,000 excluding the TDS/TCS.  

How to Calculate Advance Tax?

Here is a step by step guide to ascertain your advance tax liability and instalment amount.

Step 1: Consider your income earned for preceding financial years. 

Step 2: Ascertain how much more or less you will earn as compared to preceding years.

Step 3: Consider all your eligible deductions and exemptions.

Step 4: Make an estimate of your total taxable income. 

Step 5: Using ClearTax tax calculator, calculate the tax liability under the most beneficial tax regime for you. 

If your net tax liability exceeds Rs.10,000 for the financial year, you are required to pay advance tax. The below table will help you understand better.

Advance tax payable A = Tax on estimated total income (B) – TDS/TCS already deducted/collected (C)

Advance Tax Due Date For FY 2026-27

Taxpayers are required to pay a percentage of the tax liability as advance tax in four installments throughout the financial year. The due date for each advance tax payment installment is as follows:

1. Regular Taxpayers 

Note: No interest under Section 425 is levied if at least 12% of total advance tax is paid by 15 June and at least 36% is paid by 15 September. 

2. Taxpayers Opting Presumptive Taxation 

For freelancers, small business owners and other professionals who have opted for the Presumptive Taxation Scheme under sections 44AD & 44ADA – the advance tax due dates are as follows.

*Taxpayers opting for presumptive taxation also have the option to pay all of their tax dues by 31st March. However, any person engaged in business and opted for the presumptive scheme under for plying hiring and leasing of vehicles, is required to pay advance tax in four instalments on or before the due date as prescribed by the income tax department.

How to Pay Advance Tax Online?

The following step-by-step guide illustrates the procedure to pay advance tax online.

1. Pay Advance Tax by Logging into Income Tax Portal

Step 1: Go to Income Tax e-filing portal, and login to your account with your user ID (PAN) and password.

Step 2: Go to "e-file" and select “e-pay tax”.

Step 3: On the top right corner, click on “New Payment”.

Step 4: Various types of payments like TDS payment, equalisation levy, income tax options are available on the screen. Choose Income Tax - which contains advance tax and self assessment tax. Click ‘Proceed’.

Step 5: Choose Tax Year 2026-27, and minor head as ‘Advance Tax’ with code 100.

Step 6: Enter the components of tax like taxes, surcharge, cess, interest, etc.

Step 7: Choose the mode of payment and click ‘Pay Now’ on the next page.

Step 8: Read the terms and conditions, agree and then complete the payment through the mode chosen.

2. Pay Advance Tax Without Logging into the Income Tax Portal

Step 1: Visit the Income Tax e-filing portal of the Income Tax Department of India

Step 2: On the left side of the home page, there is a 'Quick Links' section, click on the 'e-Pay Tax' option. You can also search for 'e-Pay Tax' in the search bar.

Step 3: On this page, enter your PAN and re-enter to confirm it. Then, enter your mobile number and click on ‘Continue’.

Step 4: Now enter the 6-digit OTP received on your mobile number and 'Continue'.

Step 5: Select the first box labelled as ‘Income Tax’ and click on ‘Proceed’ 

Step 6: Select the ‘Tax year’ as 2026-27 and ‘Type of Payment’ as ‘Advance Tax (100)’ and click on 'Continue'.

Step 7: Enter all the tax details.

Step 8: Select the payment method and the bank and press 'Continue'.

Step 9: Preview the challan details and click on ‘Pay Now’. You may also ‘Edit’ these details if required.

You can see the BSR code and challan serial number on the right side of the challan. Save a copy of this tax receipt for future reference. You will need to enter the BSR code and challan number in your tax return.

Advance Tax for Salaried Individuals

For salaried employees, advance tax implication mostly does not arise since TDS is deducted on salary as per the applicable slab rates. However, in the following circumstances, advance tax implications arise even for salaried employees.

1. Job Transition

• On job transition, the employee should disclose their previous company's salary to the new employer. 
• If they don't, basic exemption limit, standard deduction will be double counted, resulting in TDS. 
• On filing ITR, when the tax payable after TDS exceeds Rs. 10,000 you need to pay advance tax. In this situation, interest liability under section 424 and 425 is also applicable.

2. Irregular income during the Financial Year

When the employees other income that are ad-hoc or irregular in nature, like expensive gifts (exceptions apply) in the middle of the year, which makes is overall tax liability exceeding Rs, 10,000 after TDS, they are liable for advance tax.

Advance Tax for Capital Gains

• Capital gains usually occur on a one-time basis. It is essential to estimate the total tax outflow due to the capital gain income and ascertain whether the tax part exceeds Rs. 10,000. If so, the assessee is liable for advance tax. 
• However, the liability arises only for the remaining quarters of the financial year. For example, a sale in July 2026 results in a LTCG tax liability of Rs.50,000, there is no advance tax liability for April-June 2026 quarter. 

Consequences of Non-Payment or Short-Payment of Advance Tax

1. Interest on Advance Tax u/s 424

As per Section 424, you must pay at least 90% of the total taxes as advance tax or TDS/TCS by 31st March. Failure to make advance tax payments will result in an interest @1% on the unpaid amount.

2. Interest on Advance tax Instalments u/s 425

If the advance tax instalments are not paid within the specified due dates, interest at 1% per month is payable. 

Advance Tax liability will be 15%, 45%, 75%, and 100% of Net Tax Liability for the month of June, September, December, and March respectively.

Advance Tax Section Mapping - Income Tax Act 1961 vs 2025

Below is the comparison of Sections from the Income Tax Act 1961 with those in Income Tax Act 2025. 

Example: Advance Tax Calculation FY 2025-26

Assume Neha has the following estimated income for FY 2026-27 and opts for the New Tax Regime:

• Salary Income: Rs. 25,00,000
• Interest Income from Fixed Deposits: Rs. 12,00,000
• TDS Deducted by Employer: Rs. 3,19,800

Step 1: Calculate Total Income

Step 2: Calculate Tax Liability (New Tax Regime)

Step 3: Advance Tax Instalments

Since the net tax payable after reducing TDS exceeds Rs. 10,000, Neha must pay advance tax in the prescribed instalments to avoid additional interests.

How to use Challan Correction Feature Online

Challan ITNS 280 should be used to pay advance tax online. Follow these steps to make corrections to tax challan:

Step 1: Log in to the e-filing ITR portal

Step 2: Select “Challan Correction” from the services tab

Step 3: Click on "Create Challan Correction Request" on the webpage

Step 4: Choose the correction type: 

• Assessment Year
• Major Head
• Minor Head 

Step 5: Enter either the Assessment Year or Challan Identification Number (CIN)

Step 6: Depending on your choice, view either specific CIN details or a list of challans for the chosen Assessment Year. Choose the relevant challan for correction.

Step 7: Input the correct information

Step 8: Verify the correction using Aadhaar OTP, Digital Signature Certificate (DSC), or Electronic Verification Code (EVC) through net-banking, Demat, or bank account.

Step 9: Once the correction is successfully verified, you will receive a success message along with a transaction ID. Keep the transaction ID for tracking the status of your correction request.

Advance Tax for HUFs and NRI

The provisions related tp advance tax are the same for HUFs and NRIs i.e., advance tax is applicable if the tax liability for the year excluding TDS/TCS exceeds Rs. 10,000. HUFs are required to compute and pay advance tax on their income from business or profession, house property, capital gains, interest, rent, and other investments. The same due dates and interest provisions apply to HUFs as they do to individual taxpayers.

NRIs also must pay advance tax on income that is taxable in India, such as rental income from Indian properties, capital gains on sale of assets located in India, business income, and interest income.

Conclusion

For compliance with advance tax provisions, it is necessary to estimate the total income for the financial year proactively, and pay tax on such estimate within the prescribed due dates. Failure to meet this obligation attracts interest at 1% per month under Section 424 and 425. However, if excess advance tax is paid, the tax payer is eligible to claim a refund.