Advance Tax Filing in India: Due Dates, Instalments & Calculation (2026 Guide)
If your estimated tax liability for the year is ₹10,000 or more, the Income Tax Act doesn't let you wait until March to pay it - you must pay in instalments through the year, or interest kicks in automatically. This guide breaks down who must pay advance tax, the exact due dates, how it's calculated, and how KanoonPe helps you estimate and pay it correctly with a flat all-inclusive quote.
Quick summary
- What it is: Income tax paid in instalments during the financial year, rather than as a lump sum after year-end.
- Governed by: Sections 208, 209, 234B and 234C of the Income Tax Act, 1961.
- Mandatory if: estimated tax liability for the year is ₹10,000 or more (after TDS credit).
- KanoonPe price: Flat, all-inclusive quote on a free callback · Timeline: ongoing, quarterly instalments across the year.
Quick facts
| Detail | Information |
|---|---|
| Governing law | Sections 208, 209, 234B, 234C, Income Tax Act, 1961 |
| Authority / portal | Income Tax e-filing portal (Challan No. ITNS 280) |
| Applicable to | Individuals, freelancers, professionals, businesses, companies |
| Threshold | Estimated tax liability ≥ ₹10,000 in the financial year |
| Instalment dates | 15 June, 15 Sept, 15 Dec, 15 March |
| Presumptive taxpayers (44AD/44ADA) | 100% by 15 March in a single instalment |
| KanoonPe price | Flat, all-inclusive quote - request a free callback |
What is advance tax?
Advance tax is income tax paid in instalments during the financial year itself - as you earn - instead of as a single payment after the year ends. It's often called the "pay-as-you-earn" scheme and applies to salaried individuals with significant other income, freelancers, professionals, businesses, and companies whose estimated tax liability for the year is ₹10,000 or more after adjusting for TDS already deducted.
The obligation is created under Section 208 of the Income Tax Act, 1961, with instalment due dates and computation rules under Section 211. Missing or underpaying an instalment triggers automatic interest under Sections 234B and 234C - there's no notice or reminder from the department; it's self-assessed and self-enforced.
Who needs to pay advance tax?
- Freelancers and professionals (consultants, doctors, lawyers, content creators) whose income isn't fully covered by TDS.
- Business owners and traders with taxable profit above the threshold.
- Salaried individuals with significant capital gains, rental income, interest income, or freelance income beyond their salary.
- Companies and firms - advance tax is mandatory for all companies regardless of amount, once liability exists.
- Senior citizens (60+) without business income are exempt from advance tax and can pay full tax through self-assessment.
- Taxpayers opting for the presumptive taxation scheme (Sections 44AD/44ADA) can pay their entire advance tax in one instalment by 15 March.
Benefits of paying advance tax on time
- Avoids interest under Sections 234B and 234C - which compounds monthly on the shortfall.
- Smooths cash flow - spreads your tax burden across the year instead of one large payment.
- Better financial planning - forces a realistic income estimate each quarter.
- Keeps your compliance record clean, useful for loan and visa applications that check tax payment history.
- Avoids last-minute scramble at year-end when funds may be tighter.
Advance tax instalment schedule (FY 2025-26 pattern, applies each year)
| Due date | Individuals & businesses (% of tax liability) | Presumptive taxpayers (44AD/44ADA) |
|---|---|---|
| On or before 15 June | 15% | - |
| On or before 15 September | 45% (cumulative) | - |
| On or before 15 December | 75% (cumulative) | - |
| On or before 15 March | 100% (cumulative) | 100% in one instalment |
Documents / information required to compute advance tax
- Estimated total income for the year (salary, business/professional income, capital gains, rent, interest)
- Details of TDS already deducted (Form 26AS / AIS)
- Investment and deduction details (80C, 80D, HRA, home loan interest, etc.)
- PAN and prior-year ITR for reference
- Bank account and net-banking access for e-payment of Challan ITNS 280
Advance tax filing process (step by step)
KanoonPe estimates and manages your quarterly advance tax; here's what happens.
- Estimate annual income. We project your income across all heads for the financial year based on current earnings and trends.
- Compute tax liability. Apply the applicable slab rates or company tax rate, less eligible deductions and rebates.
- Deduct TDS credit. Subtract tax already deducted at source to arrive at the net advance tax payable.
- Calculate instalment due. Apply the cumulative percentage schedule (15%/45%/75%/100%) for the relevant quarter.
- Pay via Challan ITNS 280. File the payment online through the income tax e-filing portal or net banking.
- Reconcile at year-end. Match total advance tax paid against final tax liability when filing the ITR, and pay any balance as self-assessment tax.
Ready to get started? Talk to a verified expert → - get a transparent, all-inclusive quote for advance tax filing within one business hour.
Advance tax fees in India
There is no government fee for paying advance tax - you only pay the tax itself. The cost you incur is the professional fee for accurate income estimation and quarterly computation.
KanoonPe offers a flat, all-inclusive quote - annual estimation, quarterly recalculation, and challan filing support bundled into one transparent number.
Advance tax interest and penalties for delay
- Section 234B (default in payment): 1% simple interest per month on the shortfall if advance tax paid is less than 90% of assessed tax.
- Section 234C (deferment of instalment): 1% per month interest on the shortfall for each instalment not paid on time, even if the full amount is paid later.
- Interest applies automatically at the time of self-assessment or ITR processing - no separate notice is issued first.
- Consistently ignoring advance tax obligations increases scrutiny risk on your return.
Advance tax vs self-assessment tax vs TDS
| Aspect | Advance tax | Self-assessment tax | TDS |
|---|---|---|---|
| When paid | During the financial year (quarterly) | After year-end, before filing ITR | At the time of payment/income credit |
| Who pays | Taxpayer (self-estimated) | Taxpayer (balance after advance tax + TDS) | Payer (employer, client, bank, etc.) |
| Purpose | Spread tax liability across the year | Settle any remaining liability | Deduct tax at the source of income |
Why choose KanoonPe
- Transparent flat pricing - one all-inclusive number, no surprise add-ons.
- Filed-on-time or refund - every instalment ships with a written SLA.
- One accountable case owner - a single named manager tracks your quarterly deadlines.
- Live status tracking - reminders and computation visibility before every due date.
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