The first advance tax instalment deadline of FY 2026-27 falls on June 15, by which eligible taxpayers are required to pay a portion of their estimated tax liability for the year. Advance tax follows a “pay as you earn” approach, under which taxes are paid in installments throughout the year.
The system is designed to spread tax payments across the year and applies to taxpayers whose estimated tax liability for the financial year exceeds ₹10,000 after accounting for TDS and TCS credits. However, not every taxpayer is liable to pay advance tax and only certain categories should pay it.
Who should pay advance tax?
Any taxpayer, including salaried individuals, freelancers, and businesses is required to pay advance tax if their estimated tax liability for the financial year exceeds the prescribed threshold after accounting for TDS and TCS credits.
Meanwhile, taxpayers (aged 60 years and above) are exempt from advance tax payment if they do not have business or professional income.
For taxpayers whose income is already subject to TDS/TCS, advance tax is still applicable if additional income such as capital gains, rental income, or interest income result in a tax liability exceeding ₹10,000 during the financial year.
Here’s a look at the list of taxpayers who should pay the first instalment of advance tax before or on the June 15 deadline:
- Salaried employees with capital gains exceeding the threshold.
- Freelancers and consultants.
- Landlords earning rental income that exceeds the ₹10,000 mark.
- Individuals with fixed deposit interest income exceeding the threshold.
- Senior citizens with business or professional income.
How to pay advance tax?
One can pay advance tax through the official website of the Income Tax Department website. (Direct link:
Step 1: Go to income tax e-filing portal, and login to your account.
Step 2: Click on the “e-file” option and select “e-pay tax”.
Step 3: Click on the “new payment” option.
Step 4: Choose the income tax option and then you will be able to find the advance tax and self assessment tax column. Then, click ‘proceed’.
Step 5: Choose tax year 2026-27, and minor head as ‘advance tax’ with code 100.
Step 6: Enter the applicable tax details, including income tax, surcharge, cess, and any interest payable, if applicable.
Step 7: Choose the mode of payment and click ‘pay now’ on the next page.
Who should pay advance tax as a lump sum?
If you are a freelancer, small business owner or any other professional and have opted for presumptive taxation, then you are required to pay 100% of your advance tax in a single installment on or before March 15, 2027, according to information available on ClearTax.
Taxpayers opting for presumptive taxation also have the option to pay all of their tax dues by March 31, 2027.
What happens if you miss the advance tax deadline?
There are two cases under which interests will be charged if you fail to make the stipulated payment on time:
Section 424 (formerly Section 234B): If the taxpayer fails to pay at least 90% of their total tax liability by 31 March, interest under Section 234B comes into effect. In such cases, simple is charged at 1% per month on the unpaid amount, starting from 1 April and continuing until the payment is made.
Section 425 (formerly Section 234C): If advance tax is not paid according to the prescribed quarterly deadlines, interest under Section 234C is levied at 1% per month on the shortfall amount.
Deadlines to pay advance tax
Advance tax is payable in four instalments throughout the financial year:
- By June 15 2026: 15%
- By 15 September 2026: 45%
- By 15 December 2026: 75%
- By 15 March 2027: 100%
To adhere to advance tax provisions and ensure compliance with the tax rules, it is necessary to estimate the total for the financial year proactively, and pay tax on such estimate within the prescribed due dates.