AY 2026-27 Advance Tax Installment Schedule: A Calendar-Ready Guide
TL;DR
- The four installment dates for FY 2025-26 (AY 2026-27): 15 June 2025, 15 September 2025, 15 December 2025, and 15 March 2026.
- Cumulative payment thresholds: 15 percent, 45 percent, 75 percent, and 100 percent of estimated annual tax.
- Section 207 mandates advance tax when the residual tax liability after TDS is Rs. 10,000 or more.
- Senior citizens without business income and presumptive taxpayers under 44AD / 44ADA get special schedules.
- All payments via Challan ITNS 280 on the e-Pay Tax facility of incometax.gov.in.
- Reconciliation appears in Form 26AS within three to five working days of payment.
What this means in plain terms
A predictable schedule is half the battle in compliance. Once you know that the financial year FY 2025-26 has four specific dates against your name, you can put them in your calendar app, link them to your investment review, and never miss one. The income tax department does not send you reminders. The challan does not auto-generate. You have to remember and act.
The schedule is the same every year — 15 June, 15 September, 15 December, 15 March — so once you internalise it, you carry it across years. What changes is the absolute amount, which depends on your income mix and TDS coverage. So the workflow is: re-estimate income before each date, compute the cumulative target, subtract what you have already paid plus TDS deducted till date, and deposit the difference.
The four key dates with examples
15 June 2025 — first installment
By this date you should have paid 15 percent of the estimated annual tax liability. So if your estimated tax for FY 2025-26 is Rs. 4 lakh, the first installment is Rs. 60,000 (15 percent). This is the most uncertain estimate because the financial year is only 75 days old.
15 September 2025 — second installment
By this date, cumulative payment should be 45 percent. On a Rs. 4 lakh estimated tax, that is Rs. 1,80,000 cumulative. Subtract what was paid on 15 June, and the second installment is Rs. 1,20,000.
15 December 2025 — third installment
By this date, cumulative payment should be 75 percent. On the same Rs. 4 lakh estimate, that is Rs. 3,00,000 cumulative. Subtract earlier installments, and the third installment is Rs. 1,20,000.
15 March 2026 — fourth installment
By this date, full 100 percent should be paid. On the Rs. 4 lakh estimate, the final installment is Rs. 1,00,000. This is the last chance to settle without triggering Section 234B from 1 April onwards.
What happens if a due date falls on a holiday or Sunday
Next working day applies
The income tax department treats the next working day as the effective due date when 15 of any month is a Sunday or public holiday. For AY 2026-27 specifically: 15 June 2025 falls on a Sunday, so 16 June 2025 is the deemed due date. 15 March 2026 falls on a Sunday, so 16 March 2026 is the deemed due date. 15 September and 15 December 2025 are working days.
Bank cut-off times still apply
Online net banking and UPI usually have a same-day cut-off for tax payments. If you pay after 8 PM, some banks treat it as next-day deposit. Always pay before 5 PM on the due date to avoid this risk.
Different schedules for different taxpayer types
Senior citizens (60+) without business income
Section 207(2) gives a full exemption from the four-installment schedule. Pay the entire liability as self-assessment tax through Challan 280 with minor head 300 before filing the ITR by 31 July 2026.
Presumptive taxpayers under Section 44AD / 44ADA
Single installment by 15 March 2026 covering 100 percent of estimated liability. No 15 June, 15 September, or 15 December obligation.
Companies and LLPs
Same four dates as individuals but the assessment year context differs. Corporate advance tax follows the same calendar.
How to compute each installment correctly
Step 1: Estimate total annual tax
Sum up salary, rent (net of standard deduction), interest, dividend, capital gains, freelance / business income for FY 2025-26. Apply your chosen regime — new is default; old needs explicit opt-out via Form 10-IEA. Compute tax with cess at 4 percent and surcharge if applicable.
Step 2: Subtract TDS for the year
Look at projected employer TDS, bank TDS on interest above Rs. 40,000 (Rs. 50,000 for seniors), client TDS on professional fees under Section 194J, tenant TDS on rent under Section 194-IB if applicable.
Step 3: Apply cumulative percentage
Multiply the residual (estimated tax minus TDS) by the cumulative percentage for the current installment date. Subtract any advance tax already paid in earlier installments. The difference is the current installment.
Step 4: Pay via Challan 280
On incometax.gov.in, navigate to e-Pay Tax, select the right minor head (100 for advance tax), choose AY 2026-27, enter the amount, and pay via your preferred mode.
A real example
Anjali, 35, Rs. 18L CTC, Mumbai, also earns Rs. 9 lakh from freelance content writing and Rs. 60,000 in dividend income. Her estimated total tax for FY 2025-26 under the new regime is Rs. 3,60,000. Her employer TDS is Rs. 1,80,000. Freelance client TDS at 10 percent under 194J is Rs. 90,000. Dividend TDS at 10 percent is Rs. 6,000. Total TDS Rs. 2,76,000. Advance tax obligation Rs. 84,000.
Her installment plan:
- 15 June 2025 (or 16 June, since 15 is Sunday): 15 percent of Rs. 84,000 = Rs. 12,600. Round to Rs. 13,000.
- 15 September 2025: cumulative 45 percent = Rs. 37,800. Already paid Rs. 13,000. Current installment Rs. 24,800. Round to Rs. 25,000.
- 15 December 2025: cumulative 75 percent = Rs. 63,000. Already paid Rs. 38,000. Current installment Rs. 25,000.
- 15 March 2026 (or 16 March, since 15 is Sunday): cumulative 100 percent = Rs. 84,000. Already paid Rs. 63,000. Final installment Rs. 21,000.
If Anjali rounds slightly above the threshold each time, she ends up paying a small excess which becomes a refund with 244A interest at 0.5 percent per month — better than paying short and accruing 234C interest at 1 percent per month.
What to do this week
- Open your calendar app and add four recurring events for FY 2025-26 — 16 June, 15 September, 15 December, 16 March.
- Set a reminder one week before each date to recompute your installment.
- Estimate FY 2025-26 income today using Q1 actuals plus projections — keep it conservative-but-not-too-low.
- Pay the relevant upcoming installment through incometax.gov.in.
- 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
Can I prepay all four installments in June itself?
Yes. The four dates are deadlines, not exact-payment dates. You can pay 100 percent on 15 June or any earlier date. The full amount remains as your credit against FY 2025-26 tax. Some people who get year-end bonuses prefer to prepay early.
What if I overpay one installment and underpay the next?
The system looks at cumulative payment at each milestone, not individual installment amounts. So if you overpay June, that excess counts toward the September threshold automatically. No need to claim it back.
How do I treat advance tax paid in someone else's name by mistake?
If the PAN on the challan is wrong, the credit goes to the wrong person. Approach the bank within seven days for a correction; otherwise the jurisdictional AO route is needed. Until corrected, your installment is treated as unpaid for 234C purposes.
Do I get interest on advance tax I overpaid?
Yes. Any excess advance tax becomes a refund when you file your ITR. The department pays interest under Section 244A at 0.5 percent per month from 1 April of the assessment year (or from the date of payment, whichever is later) until the refund is issued.
Should I split installments across multiple challans?
You can. There is no limit on the number of challans you generate for the same head and AY. Some taxpayers split a Rs. 1 lakh installment into Rs. 50,000 each across two days for cashflow reasons. Each challan generates its own CIN and all credits aggregate.
What is the difference between advance tax and TDS for the purpose of these milestones?
TDS already deducted is subtracted upfront from the residual liability. The cumulative percentage milestones apply only to the residual, not to total tax. So if your total tax is Rs. 4 lakh and TDS is Rs. 3 lakh, the four milestones (15 / 45 / 75 / 100 percent) apply to the Rs. 1 lakh residual.
Can I pay advance tax for AY 2026-27 in April 2026 retroactively?
No. April 2026 falls in the next financial year (FY 2026-27 / AY 2027-28). Any tax paid in April 2026 for the previous year is treated as self-assessment tax (minor head 300), not advance tax. You also owe 234B interest from 1 April 2026 until that payment date.
Sources
- Income Tax Department, Section 211 advance tax schedule: https://incometax.gov.in
- e-Pay Tax facility on the income tax e-filing portal: https://www.incometax.gov.in
- Form 26AS reconciliation: https://incometax.gov.in
- Section 207 senior citizen exemption details: https://incometax.gov.in
- Finance Ministry circulars on advance tax due dates: https://finmin.nic.in
This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.