Advance Tax Due Dates for FY 2025-26: The Four Installments You Cannot Miss
TL;DR
- Advance tax applies if your total tax liability for FY 2025-26 (AY 2026-27) is Rs. 10,000 or more after TDS.
- Four installments fall due on 15 June 2025, 15 September 2025, 15 December 2025, and 15 March 2026.
- The cumulative percentages are 15 percent, 45 percent, 75 percent, and 100 percent of your estimated annual liability.
- Senior citizens aged 60 and above without business income are exempt from advance tax under Section 207.
- Missing or short-paying an installment triggers Section 234C interest at 1 percent per month on the shortfall.
- Pay through the e-pay tax facility on incometax.gov.in using Challan ITNS 280 with the correct minor head.
What this means in plain terms
Advance tax is the income tax department's pay-as-you-earn system. Instead of waiting until the ITR filing deadline to settle your dues, the law expects you to estimate your annual tax and pay it in four chunks across the year. If you are salaried with TDS that fully covers your liability, you usually do not need to worry. But if you earn rent, capital gains, freelance fees, dividends, or interest beyond what TDS captures, advance tax obligations kick in.
The four-installment schedule is not a suggestion. Sections 234B and 234C of the Income Tax Act, 1961 impose interest on any shortfall or default. The interest is not punitive in tone but it compounds quickly, and many taxpayers learn about it only when they file their return and see an extra Rs. 8,000 to Rs. 25,000 added to their bill. Knowing the four dates and budgeting toward them is the simplest way to stay clean.
Who is liable to pay advance tax
The Rs. 10,000 threshold
Section 208 says advance tax is payable when the estimated tax liability for the year, after reducing TDS and TCS already deducted, is Rs. 10,000 or more. This applies to individuals, HUFs, firms, and companies. So a salaried person with Rs. 18 lakh CTC whose TDS covers everything has no advance tax to pay. But a freelancer earning Rs. 22 lakh with only partial TDS under Section 194J will almost certainly cross this threshold.
Senior citizen exemption
Under Section 207(2), a resident senior citizen aged 60 years or above who does not have income from business or profession is exempt from paying advance tax. They can settle their full liability as self-assessment tax before filing their ITR. This relief does not apply to NRIs even if they are above 60.
Presumptive taxpayers
Taxpayers opting for Section 44AD or 44ADA presumptive taxation get a special concession. They can pay the entire advance tax in a single installment by 15 March of the financial year, instead of the four-installment schedule. This is a meaningful simplification for small professionals and traders.
The four installment dates and percentages
15 June 2025 — 15 percent
The first installment of FY 2025-26 was due on 15 June 2025. By this date, at least 15 percent of your estimated annual tax liability should have been deposited. This is often the trickiest installment because the financial year has just begun and income estimates are rough.
15 September 2025 — 45 percent cumulative
The second installment is due on 15 September. By this date, your cumulative advance tax paid should reach 45 percent of estimated annual liability. So if you paid 15 percent in June, you owe another 30 percent now. By mid-September, salary, capital gains realised in Q1 and Q2, and rental income should give you a clearer picture.
15 December 2025 — 75 percent cumulative
The third installment is due on 15 December. Cumulative payment should reach 75 percent. This is typically the largest single chunk for most taxpayers because by December, three quarters of the year's income is visible and the estimate is more accurate.
15 March 2026 — 100 percent
The final installment is due on 15 March 2026. By this date, the full 100 percent of estimated annual tax should be paid. Anything paid between 16 March and 31 March still counts as advance tax but the 15 March installment shortfall already attracts Section 234C interest.
How Section 234C interest works on missed installments
One percent per month on shortfall
If you fall short at any of the four installment dates, Section 234C charges simple interest at 1 percent per month. For the first three installments the interest period is three months; for the 15 March installment it is one month. The shortfall is measured against the threshold percentages of 15, 45, 75, and 100.
Tolerance band for capital gains and dividends
Recognising that capital gains and dividend income are unpredictable, the law gives relief. If you earn capital gains or dividend income after an installment date and pay the corresponding advance tax in the next installment or by 31 March, no Section 234C interest applies on that specific shortfall. This is a critical concession for equity investors.
Section 234B kicks in after year-end
Section 234B is a separate beast. If by 31 March 2026 you have paid less than 90 percent of your assessed tax through advance tax and TDS combined, you also owe interest at 1 percent per month from 1 April 2026 until you pay the balance as self-assessment tax. This stacks on top of 234C.
A real example
Meera, 36, Rs. 32L CTC, Pune, works as a salaried product manager and also earns Rs. 6 lakh in freelance consulting income plus Rs. 4 lakh in long-term capital gains from equity sold in October 2025. Her estimated total tax liability for FY 2025-26 under the new regime is Rs. 4,80,000. Her employer deducts Rs. 3,60,000 as TDS. Her freelance clients deduct Rs. 60,000 under Section 194J. Net advance tax obligation is Rs. 60,000.
Here is how she should plan the four installments.
- By 15 June 2025, pay 15 percent of Rs. 60,000 = Rs. 9,000.
- By 15 September 2025, cumulative 45 percent = Rs. 27,000. So another Rs. 18,000.
- By 15 December 2025, cumulative 75 percent = Rs. 45,000. So another Rs. 18,000. But because the capital gains realised in October, she needs to add the tax on Rs. 4L LTCG (12.5 percent above the Rs. 1.25L threshold under Section 112A) which is roughly Rs. 34,375. She adds that to the December installment.
- By 15 March 2026, balance to 100 percent = Rs. 15,000 plus any final adjustment.
If Meera skipped the December installment entirely, her shortfall would be Rs. 45,000 plus the LTCG component. Interest under Section 234C would be 3 percent of that shortfall, roughly Rs. 2,300. Small in absolute terms but entirely avoidable.
What to do this week
- Pull up your salary slip, freelance invoices, rent receipts, and broker capital gains statement to estimate FY 2025-26 income.
- Subtract TDS already deducted and check if your residual liability crosses Rs. 10,000.
- If yes, log into incometax.gov.in and use the e-pay tax facility to deposit the next installment via Challan ITNS 280 under minor head 100 (Advance Tax).
- Set calendar reminders for the remaining installment dates so you never miss a deposit.
- Run the 6-step assessment at https://myfinancial.in to see your old-vs-new regime delta, unused deductions, and insurance gap in under 10 minutes.
FAQ
Do I need to pay advance tax if I am fully salaried with no other income?
Generally no. If your employer's TDS fully covers your tax liability for the year, advance tax does not apply because the residual liability after TDS is below Rs. 10,000. Only if you have extra income (interest, rent, capital gains, freelance fees) does advance tax become a concern.
What is the minor head to use on Challan 280?
For advance tax deposits use minor head 100 (Advance Tax). For self-assessment tax paid before filing your ITR use minor head 300. Using the wrong code creates a credit reconciliation problem that you will have to fix later through a correction request.
Can I revise my advance tax estimate during the year?
Yes. The four installments are based on your latest estimate at each date. If your income jumps or falls between installments, recalculate and pay accordingly. The law does not penalise upward revisions and the tolerance band protects you on capital gains.
What if 15 June or 15 September falls on a Sunday or holiday?
The next working day is treated as the due date. The income tax e-filing portal automatically accepts payments on the next business day without triggering 234C, but it is safer to pay a day earlier.
Is advance tax refundable if I overpay?
Yes. Any excess advance tax becomes a refund claim when you file your ITR. The department also pays interest under Section 244A at 0.5 percent per month on refunds, computed from 1 April of the assessment year until the refund is issued.
Do I need to inform anyone after paying advance tax?
No separate intimation is required. The challan you generate gets reflected in Form 26AS within a few days and you simply claim the credit when filing your ITR. Keep a copy of the challan counterfoil for your records.
How do I check if my advance tax payment is reflected?
Log in to incometax.gov.in, go to e-File, then to Income Tax Returns, then View Form 26AS. The Part C section shows all advance tax and self-assessment tax payments against your PAN. Updates take three to five working days after deposit.
Sources
- Income Tax Department, Advance Tax provisions: https://incometax.gov.in
- Section 207, 208, 211 of the Income Tax Act, 1961
- Section 234B and 234C interest provisions: https://incometax.gov.in
- e-Pay Tax facility on the income tax e-filing portal: https://www.incometax.gov.in
- Finance Ministry tax circulars: https://finmin.nic.in
This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.