Advance Tax Payment Deadline Approaches: Key Information for Taxpayers

The deadline for the first advance tax payment for the financial year 2026-27 is June 15. Taxpayers must pay if their estimated tax liability exceeds Rs 10,000. This article outlines who needs to pay, how to make payments online, and the consequences of failing to comply with advance tax requirements. It also details the payment schedule and special rules for presumptive taxation, ensuring taxpayers are well-informed ahead of the deadline.

By Narendra Chaudhary Jun 13, 2026, 17:38 IST

Upcoming Advance Tax Payment Deadline

The initial deadline for advance tax payments for the fiscal year 2026-27 is approaching on Monday, June 15. Taxpayers who qualify must submit a portion of their estimated annual tax obligations. This advance tax system operates on a 'pay as you earn' principle, allowing tax payments to be spread throughout the financial year instead of being paid in one lump sum at the end. Taxpayers are required to pay advance tax when their estimated tax liability surpasses Rs 10,000 after accounting for any Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) credits. However, not all taxpayers are subject to these regulations.

The requirement to pay advance tax applies to a wide range of taxpayers, including salaried employees, self-employed individuals, consultants, freelancers, and business owners, as long as their anticipated tax liability exceeds the specified limit. Senior citizens aged 60 and above are typically exempt from this obligation unless they earn income from a business or profession.

Even those whose salaries are subject to TDS may need to pay advance tax if they have additional income from sources like capital gains, rental income, fixed deposits, or other investments that elevate their total tax liability beyond Rs 10,000.

Taxpayers who might need to make the payment by June 15 include:

Salaried individuals with considerable capital gains.
Freelancers and independent consultants.
Property owners with taxable rental income.
Individuals earning significant interest from fixed deposits.
Senior citizens with income from business or professional activities.

How to Pay Advance Tax Online

Taxpayers can complete their advance tax payments via the Income Tax Department’s e-filing portal. Here’s how:

Log into your Income Tax e-filing account.
Click on the “e-File” tab and select “e-Pay Tax.”
Choose “New Payment.”
Select Income Tax and proceed to the Advance Tax option.
Choose Assessment Year 2027-28 (for FY 2026-27) and select Minor Head 100 for advance tax.
Input tax details, including income tax, surcharge, cess, and any applicable interest.
Select your preferred payment method and finalize the transaction.

Special Considerations for Presumptive Taxation

Taxpayers who have chosen the presumptive taxation scheme, which includes many freelancers, professionals, and small business owners, face different advance tax obligations. Instead of quarterly payments, these taxpayers are generally required to pay their entire advance tax liability by March 15, 2027, or they can settle their dues by March 31, 2027.

Failure to meet advance tax obligations can lead to interest charges under the Income Tax Act. According to Section 424 (previously Section 234B), interest is charged if a taxpayer has not paid at least 90% of their total tax liability by March 31. In such cases, a simple interest of 1% per month is applied to the outstanding amount from April 1 until the tax is settled. Additionally, Section 425 (previously Section 234C) applies when taxpayers do not adhere to the prescribed quarterly payment schedule, also incurring interest at the rate of 1% per month on the shortfall.

Advance Tax Payment Schedule for FY 2026-27

Taxpayers subject to advance tax provisions must make payments in stages throughout the year:

By June 15, 2026: 15% of total tax liability
By September 15, 2026: 45% of total tax liability
By December 15, 2026: 75% of total tax liability
By March 15, 2027: 100% of total tax liability