Advance Tax for FY 2026-27: Due Dates and Interest
The two instalments still to come, on 15 December 2026 and 15 March 2027, who must pay, how the interest for a shortfall is worked out under the Income-tax Act, 2025, and a worked example.
Published by SKAG and Associates · Page maintained by CA Gaurav Singh (ICAI M.No. 539050) · Last updated: 30 October 2026
Note: General information on the law as at 30 October 2026. Check the current Act and the e-Pay Tax service before paying; this is not a substitute for professional advice.
Advance tax is income tax paid during the year in which the income is earned, rather than after it ends. Salaried people whose only income is salary usually have it covered by TDS. It matters for professionals, business owners, landlords, investors with capital gains or large interest income, and salaried people with substantial income from other sources. The instalment dates have not changed with the new Act, but the section numbers have.
Instalments for Tax Year 2026-27
| Due date | Cumulative amount due | No deferment interest if paid at least | Interest period on shortfall |
|---|---|---|---|
| 15 June 2026 | 15% of tax | 12% | 3 months |
| 15 September 2026 | 45% of tax | 36% | 3 months |
| 15 December 2026 | 75% of tax | 75% | 3 months |
| 15 March 2027 | 100% of tax | 100% | 1 month |
“Tax” means the estimated tax on total income for the year, after TDS and TCS. Presumptive taxpayers under Section 58 (formerly Sections 44AD and 44ADA) may pay the full amount by 15 March 2027 instead.
Old and new section numbers
| Subject | Income-tax Act, 1961 (to FY 2025-26) | Income-tax Act, 2025 (from Tax Year 2026-27) |
|---|---|---|
| Liability where tax is ₹10,000 or more | Section 208 | Section 404 |
| Instalments and due dates | Section 211 | Section 408 |
| Interest for default in payment (less than 90%) | Section 234B | Section 424 |
| Interest for deferment of instalments | Section 234C | Section 425 |
How to estimate and pay
- Estimate the income for the full year from every source: business or professional receipts, rent, interest, dividends and capital gains realised so far.
- Work out the tax under the regime you expect to use, including surcharge and cess, and subtract the TDS and TCS you expect for the year (check the AIS).
- If the balance is ₹10,000 or more, pay so that the cumulative total reaches the percentage for the next date.
- Pay through e-Pay Tax on the e-filing portal, choosing advance tax as the type of payment and the correct year, and keep the challan details for the return.
- Re-estimate before 15 March; income often changes in the last quarter.
Worked example: a consultant who falls behind
Vikram is a resident consultant who does not use presumptive taxation. His estimated tax for Tax Year 2026-27, after TDS deducted by his clients, is ₹2,00,000.
| Date | Due (cumulative) | Paid (cumulative) | Shortfall | Section 425 interest |
|---|---|---|---|---|
| 15 Jun 2026 | ₹30,000 | ₹30,000 | Nil | Nil |
| 15 Sep 2026 | ₹90,000 | ₹90,000 | Nil | Nil |
| 15 Dec 2026 | ₹1,50,000 | ₹1,30,000 | ₹20,000 | ₹20,000 × 1% × 3 = ₹600 |
| 15 Mar 2027 | ₹2,00,000 | ₹1,30,000 | ₹70,000 | ₹70,000 × 1% × 1 = ₹700 |
Vikram has paid only 65% of his tax by 31 March 2027, which is below 90%. He also owes interest for default under Section 424 on the ₹70,000 balance from 1 April 2027. If he pays it with his return on 31 July 2027, that is four months: ₹70,000 × 1% × 4 = ₹2,800. His total interest is ₹600 + ₹700 + ₹2,800 = ₹4,100. If he had paid the ₹70,000 by 15 March, the ₹700 and ₹2,800 would not arise, and paying the ₹20,000 by 15 December would have saved the ₹600.
The advance tax calculator works out the instalments and the deferment interest for your own figures, and the presumptive tax calculator covers the single 15 March instalment.
Frequently Asked Questions
What are the advance tax due dates for FY 2026-27?
For Tax Year 2026-27 (FY 2026-27), at least 15% of the estimated tax is due by 15 June 2026, 45% by 15 September 2026, 75% by 15 December 2026 and 100% by 15 March 2027. The amounts are cumulative.
Who must pay advance tax for Tax Year 2026-27, and who is exempt?
Every person whose estimated tax for the year, after TDS and TCS, is ₹10,000 or more. A resident senior citizen (60 or older) with no income from business or profession is not required to pay advance tax.
What interest applies if an instalment is short?
Interest for deferment, under Section 425 of the Income-tax Act, 2025 (formerly Section 234C), is 1% a month on the shortfall: for three months for the June, September and December instalments and for one month for the March instalment. No interest arises for June and September if at least 12% and 36% of the tax has been paid.
What is the interest if less than 90% is paid by 31 March?
Interest for default in payment, under Section 424 of the Income-tax Act, 2025 (formerly Section 234B), is 1% a month or part of a month on the shortfall, from 1 April 2027 until the tax is paid or the income is determined.
Do presumptive taxpayers pay in four instalments?
No. A business or profession declaring income on a presumptive basis (Sections 44AD and 44ADA, now Section 58 of the 2025 Act) may pay the whole advance tax in one instalment by 15 March 2027. Anything paid by 31 March is also treated as advance tax.
What if capital gains arise after 15 December?
Where capital gains or casual income such as lottery winnings arise after an instalment date, no interest for deferment is charged on that portion if the tax on it is paid in the remaining instalments, or by 31 March if none remain.