Income Tax
Advance Tax in 2026: Who Pays, Due Dates & How to Calculate
Taxwapsi Editorial Team4 June 2026 3 min read
Advance tax is "pay as you earn" — if your total tax for the year (after TDS) exceeds ₹10,000, you must pay it in instalments through the year, not as a lump sum at filing. Miss it and you pay interest under Sections 234B and 234C.
Who must pay advance tax?
- Freelancers, professionals and business owners with tax over ₹10,000.
- Salaried individuals with significant other income (capital gains, interest, rent) not covered by salary TDS.
- Exception: Resident senior citizens (60+) with no business income are exempt.
Due dates & instalments
- 15 June: 15% of total tax
- 15 September: 45% (cumulative)
- 15 December: 75% (cumulative)
- 15 March: 100%
Presumptive taxpayers (44AD/44ADA) pay 100% by 15 March in a single instalment.
How to calculate
- Estimate your annual income from all sources.
- Apply your regime's slab and compute tax.
- Subtract TDS already deducted.
- Pay the balance in the instalments above using Challan 280.
FAQs
What if I underpay? Interest at 1%/month under 234B/234C applies on the shortfall.
Can I pay it all in March? You can, but you'll owe 234C interest for earlier missed instalments.
Taxwapsi computes your advance tax and sends instalment reminders — never pay interest again.