Advance tax means paying income tax as you earn, in instalments. It applies if your total tax liability for the year is ₹10,000 or more (after TDS).
Instalment schedule (Tax Year 2026-27)
| Due date | Cumulative advance tax |
|---|---|
| 15 June 2026 | 15% |
| 15 September 2026 | 45% |
| 15 December 2026 | 75% |
| 15 March 2027 | 100% |
Certain presumptive taxpayers pay it all by 15 March. Salaried people whose TDS covers their tax usually needn't pay — but capital gains, interest or freelance income can create a shortfall.
A freelancer expects ₹3,00,000 tax for the year, with no TDS.
By 15 June they should pay 15% = ₹45,000; by 15 Sept 45% = ₹1,35,000 cumulative, and so on. Skip these and Section 234C interest applies on each shortfall — a small but avoidable cost for simply paying on schedule.
If your income is lumpy (a big project, a capital gain), top up in the very next instalment after it arrives — the law accounts for capital gains from the instalment after they occur. A quick calculation each quarter beats a 234B/234C surprise at filing time.
Not sure how this applies to you?
Rules change and the answer depends on your exact numbers. Get a qualified professional to review your advance-tax instalments for your case — before you act.
Talk to a KyaTax expert →Frequently asked questions
Who pays advance tax?
Broadly, anyone whose annual tax (after TDS) is ₹10,000+. Senior citizens without business income are generally exempt. Confirm for your case.
My income is uneven — what do I do?
Estimate conservatively and top up in later instalments; capital gains count from the instalment after they arise. A calculator helps avoid 234C.
Is advance tax the same under the new Act?
The instalment framework continues; terminology uses "Tax Year 2026-27". Verify current dates.
Related: Advance Tax Calculator · More guides · Our expert panel