Missed Your June Advance Tax Payment? How Much Should You Pay By Sept 15?

The September 15 advance tax deadline is here. Taxpayers with income beyond their salary need to check whether they have paid enough of their estimated tax liability, as a shortfall can lead to interest charges.

For most taxpayers required to pay advance tax, the second instalment is due by September 15. By this date, at least 45% of the estimated annual advance tax liability should have been paid cumulatively.

If the June instalment was missed or income has increased since the earlier estimate, taxpayers should reassess their total liability and make up the shortfall instead of waiting for the next instalment.

The Income Tax Department has reminded taxpayers that September 15 is the deadline for paying the second instalment of advance tax for tax year 2026–27. In a post on X, the department urged eligible taxpayers to make the payment on time to avoid interest on late payments.

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What Is Advance Tax?

Advance tax works on a “pay-as-you-earn” basis. Instead of paying the entire income tax liability when filing the income-tax return, eligible taxpayers pay the estimated amount in instalments during the year.

Under the Income Tax Act, 2025, the provisions relating to advance tax are covered under Sections 403 to 410.  

Who Needs To Pay Advance Tax?

Advance tax generally applies to taxpayers whose estimated tax liability for the year, after adjusting for TDS and TCS, is more than Rs 10,000.

This can include salaried individuals with additional income, freelancers, professionals and businesses.

For people earning from multiple sources, estimating the year's tax liability can become difficult, particularly when income changes during the year.

How Much Advance Tax Should Be Paid By September 15?

Advance tax is divided into four instalments for most taxpayers:

• June 15 - 15%
• September 15 - 45%
• December 15 - 75%
• March 15 - 100%

Any tax paid on or before March 31 is also treated as advance tax for that financial year.

What If You Missed The June Instalment?

Missing the June payment does not necessarily mean the entire tax liability has to be paid immediately. However, taxpayers need to ensure that their cumulative payment reaches the required 45% level by September 15.

If income has increased since the original estimate, taxpayers should recalculate their expected annual income and tax liability after factoring in TDS, TCS and eligible tax credits.

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What Happens If You Pay Less By September 15?

A shortfall in the required advance tax payment can result in interest. Under the Income Tax Act, 2025, interest on the deferment of advance tax is governed by Section 425, which replaces the earlier Section 234C. The interest is levied at 1% per month, with the interest period for the September instalment set at three months.

So, a taxpayer who falls short of the required payment could face interest of around 3% of the applicable shortfall.

If at least 36% of the total estimated tax has been paid by September 15, interest under this provision does not apply for that instalment, even though the prescribed cumulative target is 45%.

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