The first advance tax payment deadline for the financial year 2026-27 is set for Monday, June 15, requiring eligible taxpayers to deposit a portion of their estimated annual tax liability. The advance tax framework operates on a “pay as you earn” basis, ensuring that tax payments are distributed across the financial year rather than being settled in a single payment at the end. Advance tax provisions become applicable when a taxpayer’s estimated tax liability exceeds Rs 10,000 after considering available Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) credits.
However, not every taxpayer falls within the scope of these rules.
The obligation to pay advance tax extends to a broad category of taxpayers, including salaried individuals, self-employed professionals, consultants, freelancers and business owners, provided their projected tax liability crosses the prescribed threshold.
Senior citizens aged 60 years or above are generally exempt from paying advance tax, provided they do not earn income from a business or profession.
Even individuals whose salaries are already subject to TDS may be required to pay advance tax if they earn additional income from sources such as capital gains, house rent, fixed deposits or other investments that push their overall tax liability beyond Rs 10,000.
Taxpayers who may need to make the June 15 payment include:
Salaried individuals with significant capital gains.
Freelancers and independent consultants.
Property owners earning taxable rental income.
Individuals receiving substantial fixed deposit interest.
Senior citizens with business or professional earnings.
Steps To Pay Advance Tax Online
Taxpayers can make their advance tax payments through the Income Tax Department’s e-filing portal.
Log in to the Income Tax e-filing account.
Select the “e-File” tab and choose “e-Pay Tax.”
Click on “New Payment.”
Select Income Tax and proceed to the Advance Tax option.
Choose Assessment Year 2027-28 (corresponding to FY 2026-27) and select Minor Head 100 for advance tax.
Enter tax details, including income tax, surcharge, cess and any applicable interest.
Select the preferred payment mode and complete the transaction.
Special Rules For Presumptive Taxation
Taxpayers who have opted for the presumptive taxation scheme, including many freelancers, professionals and small business owners, are subject to different advance tax requirements. Instead of paying tax in quarterly instalments, such taxpayers are generally required to pay their entire advance tax liability in one go on or before March 15, 2027. They may also choose to clear their tax dues by March 31, 2027.
Failing to comply with advance tax requirements can result in interest charges under the Income Tax Act.
Under Section 424 (formerly Section 234B), interest becomes payable if a taxpayer has not paid at least 90per cent of their total tax liability by March 31. In such cases, simple interest of 1per cent per month is levied on the outstanding amount from April 1 until the tax is paid.
Additionally, Section 425 (formerly Section 234C) applies when taxpayers fail to pay advance tax according to the prescribed quarterly schedule. Here too, interest at the rate of 1per cent per month is charged on the shortfall.
Advance Tax Schedule For FY 2026-27
Taxpayers covered under advance tax provisions must pay their dues in stages throughout the year:
By June 15, 2026: 15per cent of total tax liability
By September 15, 2026: 45per cent of total tax liability
By December 15, 2026: 75per cent of total tax liability
By March 15, 2027: 100per cent of total tax liability
