Advance Tax Due Dates and Payment Schedule for Tax Year 2026-27

Advance tax is income tax paid during the same tax year in which income is earned instead of waiting until the return is filed. From April 1, 2026, advance tax on income earned during Tax Year 2026-27 is governed by the Income Tax Act, 2025. The familiar four-instalment schedule continues, but the relevant section numbers have changed from those under the Income-tax Act, 1961.

Who Is Required to Pay Advance Tax?

Section 404 of the Income Tax Act, 2025

Under Section 404, advance tax is payable when the amount of tax payable during the tax year, computed under the advance-tax provisions, is Rs. 10,000 or more. This threshold continues the position that applied under Section 208 of the Income-tax Act, 1961.

In practical terms, a taxpayer estimates total income for the year, computes tax under the applicable tax regime and rates, and then reduces eligible tax credits and taxes deductible or collectible at source as provided by law. If the resulting advance-tax liability reaches the statutory threshold, advance tax becomes payable.

Resident senior citizens

The special exemption for a resident senior citizen aged 60 years or more who does not have income from business or profession continues under the applicable advance-tax framework. Taxpayers should verify eligibility for the relevant tax year because business or professional income changes the position.

Advance Tax Due Dates for Tax Year 2026-27

For taxpayers other than those covered by the single-instalment presumptive taxation rule, the cumulative advance-tax schedule remains as follows:

The percentages are cumulative. For example, by September 15 the total advance tax paid should ordinarily reach the prescribed 45% level, after taking into account the amount already paid in the June instalment.

Presumptive Taxation: Single Instalment by March 15

Section 58 and Section 408(2)

Under the Income Tax Act, 2025, an assessee paying tax on eligible business or professional income under the applicable presumptive taxation provision in Section 58 must discharge the entire advance-tax liability in a single instalment on or before March 15, as provided by Section 408(2). The Income Tax Department has confirmed that this continues the earlier approach under Sections 44AD and 44ADA of the Income-tax Act, 1961.

How Advance Tax Is Calculated

Section 405: Computation of advance tax

The Income Tax Act, 2025 provides a formula in Section 405 for computing advance-tax liability. Broadly, the taxpayer should estimate income for the tax year, apply the relevant tax rates and then account for credits and taxes deductible or collectible at source in accordance with the Act.

1. Estimate income from all applicable heads for the tax year.
2. Reduce deductions and exemptions that are legally available under the selected tax regime.
3. Calculate income tax at the rates applicable for that tax year.
4. Add applicable surcharge and health and education cess where required.
5. Reduce eligible tax credits, relief and taxes deductible or collectible at source as permitted by law.
6. Pay the resulting advance-tax liability according to the statutory instalment schedule.

Because income may change during the year, the estimate can be revised for later instalments. A shortfall or excess in an earlier estimate can therefore be considered when computing subsequent payments.

Capital Gains, Dividend and Other Unexpected Income

Income such as capital gains may not be predictable at the beginning of the year. The law governing interest for deferment of advance tax contains relief for specified categories of income where the shortfall arises because the income could not reasonably have been anticipated, subject to the statutory conditions and payment of the resulting tax in the remaining instalments or by the prescribed date.

The former article listed March 31 as a separate fifth instalment for capital gains or casual income arising after March 15. That description is misleading. March 31 is not a regular fifth advance-tax instalment. A payment made by March 31 may nevertheless receive advance-tax treatment under the applicable provisions, while interest consequences depend on the facts and statutory rules.

Interest for Failure or Deferment of Advance Tax

Section 424: Failure to pay adequate advance tax

Section 424 of the Income Tax Act, 2025 corresponds broadly to Section 234B of the old Act. The Income Tax Department states that interest remains at 1% per month or part of a month for the specified period where advance tax was required but was not paid as required, including where advance tax paid is less than 90% of assessed tax, subject to the statutory computation rules.

Section 425: Deferment of advance-tax instalments

Section 425 corresponds broadly to Section 234C of the old Act. It provides interest consequences for deferment or short payment of prescribed advance-tax instalments. The Department has confirmed that the interest framework remains unchanged in substance under the new Act. The exact amount depends on the instalment shortfall, prescribed period and statutory exceptions.

How to Pay Advance Tax Online

Advance tax can be paid through the official Income Tax e-Filing Portal using the available e-Pay Tax facility and authorized payment modes. Taxpayers should select the correct tax year and payment category so that credit is posted to the correct period.

For Tax Year 2026-27, advance tax on income earned from April 1, 2026 to March 31, 2027 should be associated with the new tax-year framework rather than an assessment year relating to income earned under the old Act.

Income Tax Act, 2025 Transition from April 1, 2026

The applicable law follows the year in which the income is earned. The Income Tax Department has clarified the transition as follows:

• Advance tax for Financial Year 2025-26, corresponding to income earned up to March 31, 2026, is governed by the Income-tax Act, 1961.
• Advance tax for Tax Year 2026-27, for income earned from April 1, 2026, is governed by the Income Tax Act, 2025.
• Old liabilities do not disappear merely because the new Act commenced. Tax, interest, refunds and other rights or obligations arising under the old law continue according to the transition provisions.
• During the transition period, taxpayers should select the correct year on the tax portal so that payment credit is allocated correctly.

Advance Tax Checklist

• Estimate total income and tax liability during the year.
• Check whether the net advance-tax liability is Rs. 10,000 or more.
• Confirm whether the normal four-instalment schedule or the presumptive single-instalment rule applies.
• Review the estimate before each due date if income has changed.
• Account for TDS, TCS and eligible credits according to the applicable law.
• Pay through the official portal and retain the payment acknowledgement.
• Reconcile tax payments with the information available in the tax account before filing the return.

Official resources: Income Tax Department e-Filing Portal | Income Tax Department Tax Payments FAQ | Income Tax Department Tax Information