Advance Tax Due Dates FY 2025-26: Instalments, Interest Rules

Do you earn income that has no TDS — capital gains, freelance fees, rent or business profits? The tax on it must be paid in advance, in instalments, during the same year the income is earned. Missing the advance tax dates does not add a fine in the criminal sense, but it does attract interest under Sections 234B and 234C. Here is the full schedule for FY 2025-26 (AY 2026-27) and how the interest works.

New law note: From 1 April 2026, the Income-tax Act, 2025 replaces the Income-tax Act, 1961. Returns for FY 2025-26 (AY 2026-27) are still filed under the 1961 Act with ITR-1 to ITR-7, so the section numbers used in this guide remain the ones for that filing. From tax year 2026-27, provisions carry new numbers (for example, Section 80C becomes Section 123 and Section 87A becomes Section 156) and key forms change (Form 16 becomes Form 130 and Form 26AS becomes Form 168), while proceedings for earlier years continue under the 1961 Act. See the complete mapping in our Income-tax Act 2025 section and form mapping guide.

Who must pay advance tax?

Advance tax applies when your estimated total tax liability for the financial year, after reducing TDS and TCS, is ₹10,000 or more. It covers income from business or profession, capital gains, rental income from property let out, lottery winnings and other receipts where tax has not been withheld.

• Salaried employees usually escape advance tax because TDS on salary covers the liability, unless they also earn capital gains, rent or other untaxed income.
• Senior citizens aged 60 or above who do not run a business are fully exempt from paying advance tax.
• Presumptive taxpayers under Sections 44AD and 44ADA pay everything in one instalment by 15 March.

The instalment schedule for FY 2025-26

The percentages below are cumulative. Each instalment lifts your total payment to the listed share of the estimated annual tax, so the September payment also covers any June shortfall.

Income such as capital gains or winnings that arises after a particular instalment date is added to the remaining instalments. For example, shares sold in November push the tax into the 15 December and 15 March payments.

One instalment for presumptive taxpayers

Businesses and professionals using the presumptive schemes need only a single payment — the entire advance tax by 15 March of the financial year. Missing even this single date triggers the interest rules below.

Interest for shortfall: Sections 234B and 234C

The interest is simple interest at 1% per month or part of a month, calculated on the amount of shortfall. Both provisions apply independently, so a delayed instalment can attract Section 234C (Section 425 of the Income-tax Act, 2025) interest and, if the year-end total is short, Section 234B (Section 424 of the Income-tax Act, 2025) interest as well.

Section 234B — default in paying advance tax

If your advance tax paid by 31 March is less than 90% of the assessed tax, interest runs at 1% per month from 1 April of the assessment year until the date the tax is paid or the assessment is completed. Paying the balance in July still costs four months of interest, which is why staggered payments matter.

Section 234C — deferment of instalments

This applies instalment by instalment. A shortfall in the June, September or December instalments attracts 1% for three months on the missing amount. A shortfall in the final 15 March instalment — including the presumptive single instalment — attracts 1% for one month on the missing amount. The arithmetic rewards accuracy early in the year more than corrections at year end.

How to calculate and pay advance tax

• Estimate your annual income from all heads, including capital gains booked so far and expected later.
• Compute tax for FY 2025-26 on that estimate, subtract TDS and TCS already made.
• Pay the remaining amount under challan ITNS 280, selecting (300) Self Assessment Tax — (100) Advance Tax code, online through the e-filing portal or a bank.
• Revisit the estimate at each instalment date and top up if income has grown.

An advance tax calculator does this arithmetic in seconds, and the income tax calculator helps you check the total-year liability before each instalment. Keep every challan acknowledgement safely, since the BSR or UTR reference is matched during processing.

How advance tax differs from self-assessment tax

Advance tax is what you pay during the year, on estimated income, in instalments. Self-assessment tax is what you pay at the time of filing, to square off any balance left after TDS and the advance instalments. Keeping the two separate in the challan matters, because the portal maps each payment to its own head when computing interest under Sections 234B and 234C.

Key takeaways

• Advance tax applies when tax after TDS is ₹10,000 or more in the financial year.
• Instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March for FY 2025-26.
• Presumptive taxpayers under 44AD/44ADA pay 100% by 15 March in one go.
• Section 234B interest of 1% per month applies if advance tax falls short of 90% of assessed tax.
• Section 234C interest applies instalment-wise for deferring any instalment.

Frequently asked questions

Is advance tax only for businesses?

No. Any taxpayer whose liability after TDS crosses ₹10,000 must pay in advance, including salaried individuals with capital gains or rental income. Only resident senior citizens without business income are exempt.

What if I miss the 15 September instalment?

The shortfall attracts 1% interest per month under Section 234C for three months, and if the year-end payment is also short of 90%, Section 234B interest runs from 1 April of the assessment year. Pay the arrears with the next instalment to limit the damage.

Do I pay advance tax on capital gains earned in March?

Gains or other income arising after 15 March can be swept into the final payment made on or before 31 March without Section 234C interest, as no instalment window remains. Any amount left unpaid after 31 March attracts Section 234B interest.

Can I pay the entire tax in one instalment instead of four?

You can pay more earlier, but paying less than the cumulative percentage by any due date triggers Section 234C interest on the shortfall for that instalment. Many taxpayers use two instalments — September and March — and accept the interest cost deliberately.

Where do I see the interest charged?

Sections 234B and 234C interest appears in your tax computation when you file the ITR, and the CPC confirms it in the intimation under Section 143(1) (Section 270 of the Income-tax Act, 2025). Use the advance tax calculator before the final instalment to project the interest.

Disclaimer: Tax laws change frequently. Verify current rates and deadlines on the official portals (incometax.gov.in, gst.gov.in) or consult a qualified professional before acting.