Advance Tax Due Dates FY 2025-26: All 4 Deadlines, Calculation & How to Pay Online

What Is Advance Tax?

Advance tax is income tax paid in advance during the financial year in which you earn the income, rather than waiting until you file your return. The Income Tax Act requires taxpayers with a tax liability exceeding ₹10,000 (after TDS credits) to pay their tax in four instalments spread across the year.

The logic is straightforward: the government needs a steady cash flow throughout the year, and advance tax ensures that high earners contribute as they earn rather than in a lump sum in July. For businesses, freelancers, investors, and anyone with income beyond salary, advance tax is a regular compliance obligation.

Who Must Pay Advance Tax?

You are required to pay advance tax if your estimated tax liability for the financial year — after accounting for TDS already deducted — is ₹10,000 or more. This covers:

• Salaried employees with significant income from other sources such as capital gains, interest, rental income, or freelance work where TDS has not been deducted adequately.
• Self-employed professionals — doctors, lawyers, consultants, and freelancers — whose entire income is typically without TDS.
• Business owners including proprietors, partners in firms, and directors of private companies paying themselves a salary below the TDS threshold.
• Investors who have realised substantial capital gains — from equity, mutual funds, or property — that push their total tax liability above ₹10,000.
• NRIs earning Indian-source income above the exemption limit, including rental income, interest, or capital gains.

Who is exempt: Senior citizens (age 60 or above) who do not have income from business or profession are exempt from advance tax. They pay their full tax at the time of filing, without interest under Section 234C.

All 4 Due Dates for FY 2025-26

The advance tax schedule for FY 2025-26 follows the standard four-instalment pattern. Each due date carries a cumulative threshold — the percentage of your total estimated tax that must have been paid by that date.

1st Instalment — 15 June 2025

Pay at least 15% of your estimated annual taxby this date. This instalment is often the trickiest because it falls early in the financial year when many taxpayers haven't yet finalised their income projections. Use your previous year's income as a starting estimate and adjust later instalments if your actual income changes.

2nd Instalment — 15 September 2025

By this date, your cumulative advance tax payments must reach 45% of the estimated annual tax. This means the 2nd instalment is effectively 30% of the annual liability (45% minus the 15% already paid). Six months into the financial year, you should have a clearer picture of your annual income, so refine your estimates here.

3rd Instalment — 15 December 2025

Cumulative payments must reach 75% by 15 December. The 3rd instalment is 30% of the annual liability. This is also when taxpayers who realised significant capital gains — say, from selling mutual funds or property — need to account for the additional tax arising from those gains.

4th Instalment — 15 March 2026

The final instalment must make up the remaining balance, bringing cumulative payments to 100% of estimated tax. Note that any self-assessment tax paid on or before 31 March 2026 is also treated as advance tax for interest calculation purposes.

How to Calculate Your Advance Tax

Calculating advance tax correctly requires estimating your total income for the year. Here is the step-by-step process:

1. Estimate total gross income. Include all heads: salary, business profit, capital gains (realised so far plus expected), rental income, interest, and any other source.
2. Deduct eligible amounts. Under the old regime, subtract standard deduction, HRA exemption, 80C deductions, 80D premiums, home loan interest, and other applicable deductions. Under the new regime, subtract only the standard deduction (₹75,000 for salaried).
3. Compute tax on net income. Apply the applicable slab rates plus 4% cess. Add surcharge if applicable (income above ₹50 lakh).
4. Subtract TDS already deducted. Check Form 26AS or AIS for TDS credits from your employer, bank (on FDs), or any other deductor.
5. Check the ₹10,000 threshold. If the net tax after TDS exceeds ₹10,000, you are liable to pay advance tax.
6. Apply the instalment percentages. Multiply the net tax by 15%, 45%, 75%, and 100% to get the cumulative amounts due at each deadline.

Step-by-Step Calculation Example

Let's take the example of Rahul, a salaried software engineer in Bengaluru with additional freelance income:

• Gross salary: ₹18,00,000
• Freelance income: ₹4,00,000
• Interest income (FDs): ₹50,000
• TDS deducted by employer: ₹2,20,000
• TDS on FD interest: ₹5,000
• Regime: New tax regime

Rahul's advance tax schedule for FY 2025-26:

Penalties for Late or Short Payment

Two sections of the Income Tax Act levy interest when advance tax is not paid correctly:

Section 234B — Shortfall in Total Advance Tax

If you have paid less than 90% of your assessed tax as advance tax by 31 March, interest at 1% per month is charged on the shortfall from 1 April until the date of actual payment (or filing of return, whichever is earlier). There is no grace — even a shortfall of ₹1 attracts this interest.

Section 234C — Deferment of Each Instalment

Even if you eventually pay 90% of your tax, interest at 1% per month (for 3 months) is charged on each instalment that was short or late:

• 1st instalment short: 1% for 3 months on the shortfall below 15%
• 2nd instalment short: 1% for 3 months on the shortfall below 45%
• 3rd instalment short: 1% for 3 months on the shortfall below 75%
• 4th instalment short: 1% for 1 month on the shortfall below 100%

For example, if Rahul from our example above skips the 1st instalment of ₹21,240 and pays it with the 2nd instalment, he owes interest of approximately ₹637 (₹21,240 × 1% × 3 months) under Section 234C.

Section 234A — Late Filing Penalty

This is separate from advance tax but worth noting: if you file your ITR after the due date, interest at 1% per month on the unpaid tax is charged from the due date of filing. Paying advance tax correctly avoids compounding this penalty.

How to Pay Advance Tax Online (Step by Step)

Advance tax is paid via Challan ITNS 280 on the Income Tax e-filing portal or authorised banks. Here's the step-by-step process:

1. Visit the Income Tax e-filing portal at incometax.gov.in and log in with your PAN and password.
2. Navigate to e-Pay Taxunder the "Quick Links" section on the dashboard.
3. Click "New Payment" and select Income Tax as the tax category.
4. Select Advance Tax (100) as the payment type.
5. Choose the Assessment Year: for FY 2025-26 payments, select AY 2026-27.
6. Enter the tax amount under the appropriate heads — basic tax, surcharge, cess, interest (if any). The portal auto-calculates cess once you enter the tax amount.
7. Select your preferred payment mode: Net Banking (immediate credit), Debit Card, or RTGS/NEFT.
8. Complete the payment and download the challan (BSR code and challan serial number). Keep this for reconciliation in your ITR.

Alternatively, you can pay at any authorised bank branch using a printed Challan 280, but online payment is faster and the credit reflects in Form 26AS within 2–3 working days.

Special Rules for Senior Citizens

Resident individuals aged 60 years or abovewho do not have any income chargeable under the head "Profits and Gains of Business or Profession" are exempt from paying advance tax. They can pay their full tax liability as self-assessment tax at the time of filing their return without attracting interest under Section 234C.

However, if a senior citizen has business income — even from a profession like consulting — this exemption does not apply, and they must follow the standard advance tax schedule.

Accurate Estimates with the Advance Tax Calculator

The calculations above involve several moving parts — salary, freelance income, capital gains, deductions, surcharge, and TDS credits. Getting the estimate wrong means either paying interest or tying up excess cash with the government.

Taficon's free advance tax calculator handles all of this automatically. Enter your income sources, deductions, and TDS details — and it instantly shows you the exact amount due at each instalment date for FY 2025-26. No signup required.