Advance Tax Due Dates FY 2025-26 — Who Pays, How Much, and When

Advance tax is income tax paid in instalments during the financial year — before the year ends. If you have significant income beyond salary (freelance, business, capital gains, rental), you likely need to pay advance tax. Missing the deadlines attracts interest under Sections 234B and 234C.

Who Must Pay Advance Tax?

You must pay advance tax if your net tax liability exceeds ₹10,000 after accounting for TDS already deducted.

Who typically needs to pay:

• Freelancers and consultants
• Business owners
• Investors with capital gains (stocks, mutual funds, property)
• Individuals with rental income
• Salaried employees with significant other income

Who is exempt:

• Salaried employees where employer deducts full TDS (net liability ≤ ₹10,000)
• Senior citizens (60+) with no business income
• Presumptive taxation filers (44AD/44ADA) — single instalment by March 15

Advance Tax Due Dates — FY 2025-26

How to Calculate Advance Tax

Step 1: Estimate your total income for the year (salary + freelance + capital gains + rental + other)

Step 2: Calculate total tax using the applicable regime (new or old)

Step 3: Subtract TDS already deducted by employer/bank

Step 4: If the balance exceeds ₹10,000, you must pay advance tax

Step 5: Pay in instalments as per the schedule above

Example:

• Estimated annual income: ₹18L (salary ₹12L + freelance ₹6L)
• New regime tax: ₹2,34,000 (approx)
• TDS deducted by employer: ₹1,00,000
• Net liability: ₹1,34,000 (> ₹10,000 — advance tax required)

Use the free Advance Tax Calculator to get your exact instalment schedule.

Interest for Missing Advance Tax

Section 234C — Instalment Shortfall

If you pay less than the required cumulative percentage by each due date:

• Interest = 1% per month × 3 months on the shortfall
• Applied per instalment

Section 234B — Total Advance Tax < 90%

If your total advance tax paid is less than 90% of your net liability:

• Interest = 1% per month from April 1 to the date of filing
• Estimated: 4 months (April to July 31) = 4% of shortfall

Example: If you paid zero advance tax on ₹1,34,000 liability:

• 234B interest ≈ ₹1,34,000 × 90% × 4% = ₹4,824

How to Pay Advance Tax

1. Go to incometax.gov.in → e-Pay Tax
2. Select Challan 280 (Income Tax on Companies / Other than Companies)
3. Select Advance Tax (100)
4. Enter your PAN, assessment year (2026-27), and amount
5. Pay via net banking or UPI

Keep the challan receipt — you'll need it when filing ITR.

Advance Tax for Freelancers

If you are a freelancer or consultant under Section 44ADA (presumptive taxation):

• You can pay the entire advance tax in a single instalment by March 15
• No need to pay in June, September, or December
• This is a significant relief for freelancers

Frequently Asked Questions

What if I miss the June 15 advance tax deadline?

You'll pay 1% per month × 3 months interest on the shortfall under Section 234C. For a ₹20,000 instalment, that's ₹600 interest. Not catastrophic, but avoidable.

Can I pay advance tax after March 15?

Yes, but it's called self-assessment tax (not advance tax). You pay it when filing your ITR. Interest under 234B applies from April 1 to the payment date.

Is advance tax applicable for capital gains?

Yes. If you sell stocks or property and have capital gains, you must include them in your advance tax calculation. Capital gains arising after March 15 can be paid in the March 15 instalment.

Do salaried employees need to pay advance tax?

Usually no — if your employer deducts full TDS, your net liability is zero. But if you have freelance income, rental income, or capital gains in addition to salary, you may need to pay advance tax on that additional income.

---

Not sure how much advance tax to pay? Use the free Advance Tax Calculator or message me on WhatsApp — I'll calculate your exact instalments.