Advance tax lets you pay income tax during the year instead of a lump sum at filing. Use our free Advance Tax Calculator for FY 2026-27 instalment amounts and due dates. Part of our Complete Salary & Tax Guide for India.
What Is Advance Tax?
Advance tax is income tax paid in instalments during the financial year based on your estimated annual income. It prevents a large tax bill at ITR filing and ensures the government receives revenue throughout the year.
Who Must Pay Advance Tax?
Anyone with net tax liability exceeding ₹10,000 after TDS must pay advance tax. Senior citizens (60+) with no business income are exempt. Salaried employees with only salary income and sufficient TDS typically do not need advance tax unless they have additional income sources.
FY 2026-27 Due Dates and Percentages
| Installment | Due Date | Cumulative % |
|---|---|---|
| 1st | 15 June 2026 | 15% |
| 2nd | 15 September 2026 | 45% |
| 3rd | 15 December 2026 | 75% |
| 4th | 15 March 2027 | 100% |
How to Calculate Your Advance Tax
Estimate annual income, calculate tax under your regime, subtract TDS already deducted, and pay the balance in instalments. Use our Income Tax Calculator for the base tax computation.
Section 44ADA Special Rule
Freelancers under presumptive taxation (Section 44ADA) pay 100% of advance tax in a single payment by March 15 — no quarterly instalments. Calculate with our Freelancer Tax Calculator. Guide: Section 44ADA freelancer tax guide.
Interest Penalty for Missing Instalments
Section 234B: 1% per month on unpaid tax from April 1 until payment. Section 234C: 1% per month per quarter on each shortfall. Both are auto-calculated in your ITR.
What If Income Changes Mid-Year?
You can revise your advance tax estimate at the next instalment. No penalty applies if you pay correctly at each due date based on your revised estimate.
Frequently Asked Questions
Who needs to pay advance tax in India?
Anyone whose estimated net tax liability for the year exceeds ₹10,000 after accounting for TDS must pay advance tax. This applies to salaried employees with additional income (rental, capital gains, interest), self-employed individuals, freelancers, and business owners. Senior citizens (60+) with no business income are exempt from advance tax.
What are the advance tax due dates for FY 2026-27?
Advance tax for FY 2026-27 must be paid in four instalments: 15% by June 15, 2026; 45% by September 15, 2026; 75% by December 15, 2026; and 100% by March 15, 2027. Each instalment percentage is of the total estimated tax for the year.
What is the penalty for not paying advance tax?
Missing advance tax payments attracts interest under Section 234B (1% per month on unpaid tax from April 1 of the assessment year until payment) and Section 234C (1% per month per quarter for each quarterly shortfall). These are automatically calculated in your ITR.
Do freelancers under Section 44ADA need to pay quarterly advance tax?
No — taxpayers opting for presumptive taxation under Section 44ADA need to pay their entire advance tax in a single instalment by March 15 of the financial year. There are no quarterly instalment requirements under 44ADA.