Taxpayers liable to pay advance tax must meet the first instalment deadline for FY 2026-27 by June 15. Under this arrangement, tax payments are made at regular intervals based on estimated annual income, reflecting the government's pay-as-you-earn approach.
Under India's advance tax rules, taxpayers with an expected annual tax bill of more than Rs 10,000, after taking TDS and TCS credits into account, may be required to pay tax in instalments during the year. Nevertheless, the obligation does not extend to everyone; only eligible taxpayer categories are required to comply.
Advance Tax Deadline: Who Should Pay?
Advance tax rules apply to a wide range of taxpayers, including salaried employees, self-employed professionals and businesses, provided their projected tax liability exceeds the prescribed limit after adjusting for TDS and TCS credits.
However, individuals aged 60 or above are not required to pay advance tax if they do not earn income from a business or profession.
ALSO READ: ITR Filing 2026: How To Maximise Income Tax Deductions Under New And Old Tax Regime
TDS or TCS deductions do not automatically eliminate advance tax obligations. If additional income streams, including property rent, investment gains or interest earnings, cause a taxpayer's annual tax bill to exceed Rs 10,000, advance tax provisions may come into play.
With the first advance tax due date falling on 15 June, the following taxpayers are among those who may need to settle an instalment towards their annual tax liability:
Employees with taxable capital gains exceeding the applicable limit.
Independent professionals and consultants.
Landlords whose rental earnings generate tax payable above the threshold.
Depositors earning significant interest from fixed deposits.
Senior citizens engaged in business or professional activities.
Advance Tax Deadline: How To Pay?
Those looking to pay advance tax before the deadline can do so online via the Income Tax Department's portal. Here's how:
Log in to your account on the Income Tax e-filing website.
From the dashboard, head to 'e-File' and click on 'e-Pay Tax'.
Select 'New Payment' to begin the process.
Under tax categories, choose Income Tax, followed by the Advance Tax option.
Select AY 2026-27 and choose Minor Head Code 100, which relates to advance tax.
Enter the required tax amounts, including any surcharge, cess or interest liability.
Review the details, choose a payment mode and submit the payment.
Advance Tax Deadline: Penalties
Failing to meet advance tax obligations on time can result in additional costs for taxpayers, with interest levied under two key provisions:
Section 424 (formerly Section 234B): If less than 90% of the total tax due has been paid by the end of the financial year, taxpayers are required to pay simple interest at 1% per month on the unpaid balance from 1 April onwards.
Section 425 (formerly Section 234C): This section comes into play when advance tax instalments are not paid as per the prescribed schedule. A monthly interest charge of 1% is imposed on the amount of the shortfall.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
