Advance Tax Payment FY 2026-27: Due Dates, Online Payment & Calculator

Advance Tax Payment FY 2026-27: Due Dates, Online Payment & Calculator

Under the advance tax system, taxpayers are required to pay their tax liability during the financial year instead of paying it at the time of filing returns. If the total tax liability after TDS exceeds ₹10,000 in a financial year, advance tax becomes mandatory. For FY 2026-27, the provisions of the Income Tax Act, 2025 are applicable. Advance tax can be paid online through the Income Tax Portal, either by logging in or using the quick links option without login.

What is Advance Tax?

Advance tax refers to income tax paid in instalments during the financial year rather than as a lump sum after the year ends. The provisions related to advance tax are covered under Sections 403 to 410 of the Income Tax Act, 2025.

Taxpayers estimate their total income at the beginning of the year and calculate their expected tax liability. This tax is then paid in fixed percentages across four instalments as per the prescribed due dates.

Who Should Pay Advance Tax?

As per Section 404, any taxpayer whose estimated tax liability exceeds ₹10,000 in a financial year must pay advance tax.

Even if TDS is already deducted, advance tax is still applicable if the remaining tax payable exceeds ₹10,000. This rule applies to salaried individuals, freelancers, and businesses.

Senior citizens aged 60 years or above without business or professional income are exempt. However, those earning from business or profession must comply with advance tax provisions.

Advance Tax Due Dates for FY 2026-27

Regular Taxpayers

• 15th June 2026 – 15% of total tax liability
• 15th September 2026 – 45% of tax liability (less tax already paid)
• 15th December 2026 – 75% of tax liability (less tax already paid)
• 15th March 2027 – 100% of tax liability (less tax already paid)

Note: No interest under Section 425 is charged if at least 12% tax is paid by June and 36% by September.

Presumptive Taxation Scheme

Taxpayers opting for presumptive taxation under Sections 44AD and 44ADA must pay 100% of advance tax by 15th March 2027. They may also pay the full amount by 31st March.

How to Calculate Advance Tax

Steps to Calculate

• Review income from previous financial years
• Estimate expected income for the current year
• Apply eligible deductions and exemptions
• Compute total taxable income
• Calculate tax liability under the applicable regime
• Deduct TDS/TCS to arrive at net tax payable

If the net tax exceeds ₹10,000, advance tax must be paid.

How to Pay Advance Tax Online

With Login

• Visit the income tax portal and log in using PAN and password
• Navigate to e-file → e-pay tax
• Click on “New Payment”
• Select Income Tax and choose Advance Tax (100)
• Enter tax details and select payment mode
• Confirm and complete the payment

Without Login

• Visit the e-filing portal and click on ‘e-Pay Tax’ under Quick Links
• Enter PAN and mobile number
• Verify using OTP
• Select Income Tax → Advance Tax
• Enter details, choose payment mode, and pay
• Save challan details for future reference

Advance Tax for Salaried Individuals

Generally, salaried individuals do not need to pay advance tax due to TDS deduction. However, it may apply in cases such as:

• Change of job without proper income disclosure
• Additional income like gifts or freelance earnings

Advance Tax on Capital Gains

Capital gains are usually one-time income. Advance tax is applicable only for the remaining instalments after such gains arise during the year.

Consequences of Non-Payment or Short Payment

Interest under Section 424

If less than 90% of total tax is paid by 31st March, interest at 1% per month is charged.

Interest under Section 425

If instalments are missed or underpaid, interest at 1% per month applies for the respective period.

Advance Tax Calculation Example

A freelancer estimates total income, deductions, and TDS to arrive at net tax payable. If the final liability exceeds ₹10,000, advance tax must be paid in instalments as per due dates. The instalment amounts are calculated based on the percentage applicable at each stage.

Challan Correction Process

• Log in to the income tax portal
• Select “Challan Correction” under services
• Create a correction request
• Enter relevant details like Assessment Year or CIN
• Update the required fields
• Verify using OTP, DSC, or EVC
• Save the transaction ID for tracking

Conclusion

To comply with advance tax provisions, taxpayers must estimate their annual income and pay taxes within the specified deadlines. Delays or non-payment can lead to interest under Sections 424 and 425. On the other hand, excess payment can be claimed as a refund while filing returns.

Frequently Asked Questions (FAQs)

1. What is advance tax in India?
Advance tax is the income tax paid in installments during the financial year instead of paying the entire amount at the end of the year.

2. Who is required to pay advance tax?
Any taxpayer whose total tax liability exceeds ₹10,000 in a financial year is required to pay advance tax.

3. What are the due dates for advance tax payments?
Advance tax is paid in four installments:

• 15th June – 15%
• 15th September – 45%
• 15th December – 75%
• 15th March – 100%

4. How is advance tax calculated?
Advance tax is calculated based on estimated total income for the year, after considering deductions, exemptions, and TDS.

5. Do salaried individuals need to pay advance tax?
Usually, salaried individuals do not need to pay advance tax if TDS covers their tax liability. However, they must pay advance tax if they have additional income (like rent, capital gains, or interest).

6. Is advance tax applicable to freelancers and self-employed individuals?
Yes, freelancers and self-employed individuals must pay advance tax if their tax liability exceeds ₹10,000.

7. What happens if advance tax is not paid on time?
Interest under Sections 234B and 234C of the Income Tax Act may be charged for non-payment or late payment.

8. How can I pay advance tax online?
You can pay advance tax through the Income Tax e-filing portal using net banking, debit card, or other online payment options.

9. What is presumptive taxation and how does it affect advance tax?
Under presumptive taxation (Sections 44AD/44ADA), taxpayers can pay the entire advance tax in one installment by 15th March.

10. Can advance tax be revised during the year?
Yes, you can revise your advance tax payments based on changes in your income estimates during the financial year.

11. What is the penalty for short payment of advance tax?
Interest is levied if the required percentage of tax is not paid by the due dates.

12. How do I check my advance tax payment status?
You can check payment status through Form 26AS or the Annual Information Statement (AIS) on the Income Tax portal.

Disclaimer

This content is for informational purposes only and reflects provisions of the Income Tax Act as amended up to FY 2025–26. Please consult a Chartered Accountant for professional advice.

Written by

Asha Ahuja Sethi (Head Admin at Jatin Sethi & Co., Chartered Accountants)

Shilpa Khata ( Works at Jatin Sethi & Co., Chartered Accountants)