Description: Confused about advance tax due dates for FY 2026-27? Learn who must pay, how much, when, and how to calculate it without penalty.

Most salaried professionals think of tax as an annual event every July. Then a freelance payment lands, or a mutual fund is redeemed at a profit, and suddenly there’s a notice about interest. It usually comes down to one thing: tax on certain income must be paid during the year itself, not after.

Here’s who needs to pay advance tax for FY 2026-27, when it’s due, how to calculate it, and what happens if a deadline slips.

What Advance Tax Means

Advance tax is income tax paid in instalments through the year based on expected income, rather than as one payment after it closes — the pay-as-you-earn scheme. Freelance fees, rental income, capital gains, and interest income usually escape an employer’s TDS, so this tax must reach the government within the year it’s earned.

This falls under the Income-tax Act, 2025, effective 1 April 2026, governing income from FY 2026-27 onward. Provisions sit in Sections 403–410, replacing Sections 207–219 of the 1961 Act — the structure is unchanged, only the numbering has shifted.

Who Needs to Pay, and Who’s Exempt

Under Section 404, advance tax applies to anyone — individual, HUF, firm, LLP, or company — whose estimated tax liability, after TDS/TCS deducted, is ₹10,000 or more. It typically catches salaried individuals with untaxed rental income or capital gains, freelancers whose clients skip TDS, business owners, and investors selling shares at a profit. If salary is your only income and TDS covers it, you’re in the clear.

Section 403 exempts resident individuals aged 60+ with no business or professional income — both conditions must hold. A senior citizen with a business or professional income still follows the regular rules.

Due Dates for FY 2026-27

Advance tax is paid in four cumulative instalments:

Payment after 15 March but by 31 March still counts, though a short interest charge under Section 425 usually applies. Taxpayers under the presumptive scheme in Section 58 (formerly 44AD/44ADA) can instead pay the entire amount in one instalment by 15 March — a relief that doesn’t extend to the goods-carriage presumptive scheme (formerly 44AE), which still follows the four-instalment schedule.

How to Calculate It

Section 405’s formula: advance tax payable = tax on estimated total income, minus expected TDS/TCS.

1. Add up expected income across all heads — salary, house property, business, capital gains, other sources
2. Apply slab rates for your regime, add cess/surcharge
3. Subtract expected TDS/TCS; if the balance is ₹10,000+, pay it per the schedule above

Example: A consultant expecting ₹16,40,000 total income (₹14,00,000 professional + ₹2,40,000 rental) owes roughly ₹1,33,120 after cess. If clients have already deducted ₹1,40,000 in TDS, little or no advance tax is due.

Estimates shift through the year, so it helps to have a CA review yours before each instalment — Tax Vic’s Income Tax Planning services cover this.

Missing a Deadline or Underpaying

Two provisions apply: Section 424 (formerly 234B) triggers when total advance tax paid falls below 90% of assessed tax. Section 425 (formerly 234C) applies instalment-by-instalment, charging interest even if you eventually pay in full, simply because an earlier deadline was missed. Both charge 1% per month on the shortfall — though there’s no Section 425 interest if you’ve paid at least 12% by 15 June and 36% by 15 September. Hard-to-predict income like capital gains or dividends gets relief too, if paid by 31 March.

Paying Online

Visit the e-Filing Portal → e-Pay Tax, verify PAN and OTP, select Income Tax → Advance Tax (code 100), choose the Tax Year, and pay via net banking or card. A wrong assessment year or estimate can cause reconciliation issues later, so a CA review before submission helps.

Key Takeaways

If your estimated liability after TDS/TCS crosses ₹10,000, the four-instalment schedule applies unless you qualify for the senior citizen exemption or presumptive taxation. Missing a due date isn’t a disaster, but it does mean interest — entirely avoidable with a bit of planning.

Need help with this? If you’d like a CA to review your advance tax estimate or handle your entire compliance calendar, book a 15 min free consultation with Tax Vic.

Author: CA Reetu Bhandari

Published: 29 September 2023

Last Reviewed: 4 July 2026

Disclaimer: This article is intended for general informational purposes only and does not constitute tax, legal, or financial advice. Tax provisions, due dates, and interest calculations are subject to change based on government notifications and individual circumstances. Readers are advised to consult a qualified Chartered Accountant or tax professional before making any tax-related decisions.