Advance Tax 2026-27: Due Dates and How to Calculate It

Advance tax is income tax paid during the year instead of in one go at the end. For tax year 2026-27, anyone whose tax after TDS and TCS is ₹10,000 or more pays it in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March 2027.

This guide explains who must pay, how to estimate the tax, a worked example for a trader with business, rent and capital gains income, the interest for paying late or too little, and how to pay.

Who has to pay advance tax

• Business owners, professionals and freelancers – their income usually has little or no TDS.
• Salaried people with sizeable other income: rent, interest, capital gains or side income.
• Not required: resident senior citizens (60 or more) who have no income from business or profession, and anyone whose tax after TDS is below ₹10,000.

Due dates for 2026-27

• 15 June 2026: at least 15% of the year's tax.
• 15 September 2026: at least 45%.
• 15 December 2026: at least 75%.
• 15 March 2027: 100%.
• Presumptive scheme (old sections 44AD and 44ADA): the full amount can be paid by 15 March.

How to estimate it

1. Estimate the full year's income by head: salary, house property, business or profession, other sources and capital gains.
2. Work out tax on normal income at your regime's slab rates. In the new regime for 2026-27, income up to ₹12 lakh is effectively tax-free through the rebate, with marginal relief just above.
3. Add tax on capital gains at special rates: 20% on short-term gains from listed shares, 12.5% on long-term gains (₹1.25 lakh a year exempt on listed equity).
4. Add 4% health and education cess (and surcharge if income exceeds ₹50 lakh).
5. Subtract TDS and TCS shown in your AIS. The balance is the advance tax for the year.
6. Multiply by the cumulative percentage for each date and subtract what you've already paid.

Worked example

Rakesh, a Raipur trader, expects business profit of ₹16 lakh, rent of ₹1.8 lakh (after the 30% deduction), interest of ₹95,000, short-term equity gains of ₹60,000 and long-term equity gains of ₹2.1 lakh. TDS on his interest and rent comes to ₹45,000.

1. Normal income: ₹18.75 lakh. New-regime tax on it: ₹1,75,000.
2. Capital gains tax: 20% of ₹60,000 + 12.5% of (₹2.1 lakh − ₹1.25 lakh) = ₹12,000 + ₹10,625 = ₹22,625.
3. Add 4% cess: total tax ₹2,05,530 (the old regime would be ₹3,51,130 even with ₹2 lakh of deductions).
4. Less TDS ₹45,000: advance tax for the year ₹1,60,530.
5. Cumulative due: ₹24,080 by June, ₹72,239 by September, ₹1,20,398 by December, ₹1,60,530 by March.
6. He paid ₹40,000 in June and ₹70,000 in September, so he needs ₹10,398 more by 15 December.

Interest for paying late or too little

• Deferment of instalments (old section 234C): 1% a month on the shortfall – for three months for the June, September and December instalments and one month for March. No interest if at least 12% is paid by June and 36% by September.
• Default (old section 234B): if less than 90% of the tax is paid by 31 March, 1% a month on the unpaid amount from April until you pay.
• In the example, if Rakesh pays nothing more, interest would be about ₹2,838 by a July 2027 return – cheaper to pay on time.

How to pay

Pay online through e-Pay Tax on the income-tax e-filing portal, choosing advance tax for the correct tax year, by net banking, UPI or card. Save the challan with the BSR code, date and serial number – you'll enter them in your return.

Our free Advance Tax Calculator 2026-27 works out tax under both regimes, presumptive income, capital gains, the four instalments and interest for shortfalls. The Pro edition adds a quarterly re-estimate and a challan log. For detailed sale-by-sale gains, use the Capital Gains Calculator, and for a quick slab check the income tax calculator.