Advance Tax for FY 2026-27: Due Dates, Instalments, Who Must Pay and Interest for Shortfall
Four instalments — 15 June, 15 September, 15 December and 15 March — or one by 15 March if you use presumptive taxation. Who must pay, how to estimate, and what a missed instalment costs.
In this article
Advance tax is income tax paid during the year the income is earned, not after. If your tax for the year — after TDS — comes to ₹10,000 or more, you must pay it in instalments. The rule applies to proprietors, professionals, partners with taxable income, firms, LLPs and companies alike.
Due dates and instalments for FY 2026-27
| Due date | Cumulative advance tax payable |
|---|---|
| 15 June 2026 | 15% |
| 15 September 2026 | 45% |
| 15 December 2026 | 75% |
| 15 March 2027 | 100% |
If you declare income under the presumptive scheme (section 58 of the Income-tax Act 2025 — the old 44AD / 44ADA), you pay the entire amount in one instalment by 15 March 2027.
Any amount paid by 31 March still counts as advance tax for the year; it only affects the interest calculation.
Who is exempt
- A resident senior citizen (60 or over) with no business or professional income.
- Anyone whose tax liability after TDS/TCS is below ₹10,000.
How to estimate
- Project the year's income by head: business or profession, salary, house property, capital gains, other sources.
- Apply the slab rates (or the flat rate for a firm/LLP/company), add surcharge if applicable and 4% cess.
- Subtract TDS and TCS you expect to be credited during the year.
- Pay the cumulative percentage by each date. Re-estimate at each instalment — the law expects you to revise as the year unfolds.
Pay online through the e-filing portal (e-Pay Tax) using Challan ITNS 280, selecting "Advance Tax (100)" and the correct assessment year (for FY 2026-27, pick AY 2027-28 until the portal's labels switch to the "tax year" vocabulary).
What a shortfall costs
The Income-tax Act 2025 carries forward the two interest charges from sections 234B and 234C of the old Act (now sections 424 and 425):
- Deferment interest — 1% a month, for three months, on the shortfall at each of the first three instalments, and 1% for one month on the shortfall at 15 March. No interest on the June or September instalments if you have paid at least 12% and 36% respectively.
- Shortfall interest — if the advance tax you paid by 31 March is less than 90% of the assessed tax, 1% a month on the unpaid amount from 1 April until you pay (self-assessment tax) or the assessment date.
Both are simple interest, part of a month counts as a full month, and neither is deductible.
Example
A proprietor's tax for the year works out to ₹2,40,000 after TDS. They pay nothing until 15 March, then pay it all.
- Deferment interest: on ₹36,000 (15%) × 1% × 3 months = ₹1,080; on ₹1,08,000 (45%) × 1% × 3 = ₹3,240; on ₹1,80,000 (75%) × 1% × 3 = ₹5,400. Total ≈ ₹9,720.
- Shortfall interest: nil, because 100% was paid before 31 March.
Paying in the four instalments would have cost nothing extra.
Capital gains and windfalls
If a shortfall arises because of capital gains, lottery or game winnings, or income of a kind that did not exist at an earlier instalment date, deferment interest is not charged for the earlier instalments — provided you pay the tax on that income in the instalment(s) that follow. Sale of a property in February, for example, only needs the tax on the gain paid by 15 March.
Calendar for the year (individuals with business income)
- 15 June 2026 — 1st instalment, 15%
- 31 July 2026 — file ITR for FY 2025-26 (non-audit cases)
- 15 September 2026 — 2nd instalment, 45%
- 31 October 2026 — file ITR for FY 2025-26 (audit cases; audit report by 30 September)
- 15 December 2026 — 3rd instalment, 75%
- 15 March 2027 — 4th instalment, 100% (presumptive: 100%)
- 31 March 2027 — last day for advance tax to count as such
Our income tax services include quarterly advance-tax estimates so the March instalment is never a surprise.
Frequently asked questions
Do I have to pay advance tax if TDS is deducted on my income?
Only on the balance. Work out the year's tax, subtract TDS and TCS you expect to be credited, and if what is left is ₹10,000 or more, pay that in instalments.
I am a senior citizen with rental and interest income. Am I exempt?
Yes — a resident individual aged 60 or more with no income from business or profession is not required to pay advance tax.
What if my income comes mostly in the last quarter?
Interest for deferment is not charged on a shortfall caused by capital gains, lottery winnings or income that first arose after an instalment date, provided you pay the tax on it in the remaining instalments. Ordinary business seasonality does not qualify — estimate the whole year and pay the percentages on time.
Sources
This article is general information for Indian MSMEs, not advice on your specific case. Scheme terms, tax rates and due dates change; the sources above were checked when the article was written or last updated. Speak to a professional before acting on it.
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