Advance Tax Payment —
Due Dates, Calculation & How to Pay
When advance tax applies, the four instalment due dates and percentages, how to estimate and pay it via Challan 280, and the Section 234B/234C interest you pay if you miss it.
Advance tax is income tax paid in instalments during the year, instead of a lump sum at filing. You must pay it if your estimated tax for the year, after TDS/TCS, is Rs 10,000 or more. It falls due in four instalments — 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March (cumulative). Pay online via Challan 280 (e-Pay Tax) at incometax.gov.in. Miss it and interest runs at 1% per month under Sections 234B and 234C. Advance tax applies under both the old and new tax regimes.
Advance tax rules apply the same way whether you file under the old or the default new regime — only your estimated tax figure differs. Estimate your liability under the regime you intend to choose, then apply the 15/45/75/100% schedule to that number.
Who Has to Pay Advance Tax?
Anyone whose total tax liability for the year (after TDS and TCS) is Rs 10,000 or more must pay advance tax. In practice this catches:
- Salaried employees with extra income (interest, dividend, capital gains, rent, freelance) where employer TDS does not cover the full liability
- Business owners, professionals and freelancers whose income is not fully covered by TDS
- Investors with capital gains, dividend or high interest income
- Self-employed and presumptive taxpayers under Sections 44AD / 44ADA
A resident individual aged 60 or above who has no income from business or profession is not liable to pay advance tax (Section 207) — such taxpayers can pay any balance as self-assessment tax at filing. Everyone else above the Rs 10,000 threshold must pay.
Advance Tax Due Dates & Instalment Percentages
The percentages are cumulative — each due date states the minimum total you should have paid by then, not a fresh slice. The same four dates apply to FY 2025-26 (AY 2026-27).
| Instalment | Due date | Cumulative % | Pay this instalment |
|---|---|---|---|
| 1st | 15 June 2025 | 15% | 15% of estimated tax |
| 2nd | 15 September 2025 | 45% | 30% more |
| 3rd | 15 December 2025 | 75% | 30% more |
| 4th | 15 March 2026 | 100% | Remaining 25% |
| Presumptive (44AD/44ADA) | 15 March 2026 | 100% | Full amount in one instalment |
If a due date is a bank holiday, payment on the next working day is generally accepted. Presumptive taxpayers under 44AD/44ADA pay 100% by 15 March only.
If capital gains, lottery winnings or dividend arise after an instalment due date, you are not charged 234C interest for the earlier instalments on that income — provided you pay the tax on it in the remaining instalment(s) or by 31 March. You cannot always foresee such gains, so the law gives this proportionate relief.
Not sure which instalments you have missed this year?
Talk to a Tax Expert →How to Calculate Your Advance Tax
Work out the tax on your estimated net income using the applicable slabs, add surcharge (if any) and 4% cess, then subtract the TDS/TCS already deducted. If the balance is Rs 10,000 or more, spread it across the four due dates.
Worked example — estimated tax Rs 80,000, TDS Rs 20,000
Cumulative instalments on Rs 60,000
So on 15 June you pay Rs 9,000; by 15 September a cumulative Rs 27,000 (Rs 18,000 more); by 15 December Rs 45,000 (Rs 18,000 more); and by 15 March the full Rs 60,000 (Rs 15,000 more). Estimate a bit high rather than low to avoid 234B/234C interest. Try our advance tax calculator or the income tax calculator.
How to Pay Advance Tax Online (Challan 280)
Advance tax is paid through the e-Pay Tax service (Challan 280) on the income-tax portal — no login is needed for the payment itself.
- Go to incometax.gov.in and open e-Pay Tax
- Enter your PAN and mobile number and verify with OTP
- Choose Income Tax (Challan 280), then Assessment Year 2026-27 for FY 2025-26
- Select type of payment (100) Advance Tax
- Enter the amount (tax + any cess/surcharge) and pay by net banking, debit card, UPI, or NEFT/RTGS
- Download the challan (note the BSR code and challan serial number) — you report it in your ITR
- PAN and registered mobile number
- Estimated income & tax working
- TDS/TCS figures (Form 26AS / AIS)
- Correct Assessment Year (AY 2026-27)
- Payment type "(100) Advance Tax"
- Challan / BSR code saved for the ITR
Advance tax for income earned in FY 2025-26 is paid against AY 2026-27. Selecting the wrong year is a common error that makes the payment hard to match in your return — always confirm the AY before you pay. The payment usually reflects in Form 26AS within a few working days.
Want us to compute and pay your advance tax correctly?
Get Expert Help →Interest for Non-Payment — Sections 234B & 234C
Missing or underpaying advance tax attracts simple interest at 1% per month (or part of a month) under two separate sections:
| Section | Trigger | Interest |
|---|---|---|
| 234B | Advance tax paid is less than 90% of assessed tax | 1%/month from 1 April of AY to date of payment/filing |
| 234C | Shortfall in any individual instalment (deferment) | 1%/month on the short amount for that instalment period |
234C is not charged for the Jun/Sep instalments if you have paid at least 12% / 36% of tax by those dates respectively (a statutory safe harbour); check the exact test for your case.
234C example — nothing paid by 15 Sep
234B example — under 90% at year end
234B and 234C can apply together, and any remaining tax plus interest is paid as self-assessment tax when you file. For interest on late filing itself, see Section 234B & 234C and related provisions.
Advance Tax — Frequently Asked Questions
Related TaxClue Services
Next in this income-tax cluster
Never Miss an Advance Tax Instalment
Our CA-led team estimates your liability, spreads it across the four due dates, pays via Challan 280 and reconciles it in your ITR — avoiding 234B/234C interest. 100% online, across India.