Quick Answer: Advance tax is payable if your total tax liability exceeds ₹10,000 in a financial year. Due dates: 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March. For presumptive income taxpayers (Section 44AD/44ADA), 100% is due by 15 March. Interest under Section 234B/234C applies for shortfalls.
Advance Tax — Pay as You Earn
India's tax system is based on "pay as you earn." If your estimated tax liability exceeds ₹10,000 in a financial year, you must pay it in quarterly instalments called advance tax — rather than paying the full amount at the end of the year when filing your ITR.
Advance Tax Instalment Schedule — FY 2025-26
| Instalment | Due Date | Cumulative % |
|---|---|---|
| 1st Instalment | June 15, 2025 | 15% |
| 2nd Instalment | September 15, 2025 | 45% |
| 3rd Instalment | December 15, 2025 | 75% |
| 4th & Final | March 15, 2026 | 100% |
Frequently Asked Questions
Missing or underpaying an instalment attracts interest under Section 234C at 1% per month on the shortfall, for each instalment. Section 234B interest (1%/month) also applies if total advance tax paid is less than 90% of tax liability.
Senior citizens (60 years or above) who do not have income from business or profession are exempted from paying advance tax. They can pay all their tax at the time of filing the ITR or through self-assessment tax.