Who has to pay advance tax
Advance tax is income tax paid during the year rather than after it ends. You owe it when the tax on your income for the year, after subtracting tax already deducted at source, comes to ₹10,000 or more. For most salaried people TDS covers everything, so advance tax matters mainly when you also have interest, rent, capital gains or freelance income.
A resident aged 60 or more who has no income from a business or profession does not have to pay advance tax at all; any tax due can be paid as self-assessment tax before filing. Tick the senior option on the calculator if that applies.
The four due dates for tax year 2026-27
From 1 April 2026 the Income-tax Act 2025 calls the year a “tax year”, and the instalments are unchanged: by 15 June you should have paid 15% of the year’s advance tax, by 15 September 45%, by 15 December 75%, and by 15 March 100%. Under the presumptive scheme for small businesses the whole amount can be paid in one instalment by 15 March.
Take ₹15 lakh of salary plus ₹3 lakh of other income under the new regime. The tax for the year is ₹1,50,800. If your employer deducts ₹97,500, advance tax of ₹53,300 is due: ₹7,995 by 15 June, a total of ₹23,985 by 15 September, ₹39,975 by 15 December and the full ₹53,300 by 15 March.
Advance tax = tax for the year − TDS and TCS
Interest if you pay late or too little
Two interest charges apply. If less than 90% of the tax assessed is paid by the end of the tax year, interest runs at 1% a month or part of a month from 1 April until you pay; this is section 424 of the 2025 Act, which replaced section 234B. If an instalment falls short, interest of 1% a month is charged on the shortfall, for three months per instalment and one month for the March one; this is section 425, which replaced section 234C.
Income tax for the year that ended on 31 March 2026 still follows the old sections, 234B and 234C. The calculator shows what is due and when, but does not work out interest, which depends on the exact dates you paid.
Frequently asked questions
Do salaried employees have to pay advance tax?+
Only if the tax on their total income, after TDS, is ₹10,000 or more for the year. A salary alone is usually fully covered by the employer’s TDS; advance tax usually comes up when there is also interest, rent, capital gains or freelance income that no one deducts tax on.
What are the advance tax due dates for tax year 2026-27?+
15 June 2026 for 15% of the year’s advance tax, 15 September 2026 for 45% in total, 15 December 2026 for 75% in total, and 15 March 2027 for the full amount. These are cumulative figures, so each payment tops you up to that share.
Is advance tax the same under the Income-tax Act 2025?+
The mechanics are the same: the ₹10,000 threshold, the four instalments and the exemption for residents aged 60 or more without business income all carry over. The section numbers change, with 424 and 425 replacing 234B and 234C for interest, and the year is now called the tax year.
What happens if I miss an advance tax instalment?+
Interest of 1% a month is charged on the shortfall for that instalment, and if less than 90% of the year’s tax is paid by 31 March, further interest of 1% a month runs from 1 April until you pay. Paying the shortfall as soon as possible limits both.
Do senior citizens have to pay advance tax?+
A resident individual aged 60 or more who has no income from a business or profession is exempt from advance tax. They pay any balance as self-assessment tax before filing the return. Seniors with business or professional income are not exempt.
How is advance tax paid?+
Online through the e-Pay Tax service on the income tax portal, choosing advance tax as the payment type for the correct tax year. Keep the challan details, because the payments are matched against your return when you file.
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