It is also further stated by the Income Tax Department of India that the final instalment of Advance Tax in FY 2025–26 must be paid on or before 15 March 2026. Taxpayers whose total tax liability exceeds ₹10,000 after adjusting TDS and TCS must pay advance tax in installments during the financial year. Advance tax serves to assist taxpayers pay their income tax in increments rather than a lump sum at the end of the year. The system ensures better compliance and assists the government in ensuring the flow of revenue.
Who Needs to Pay Advance Tax?
Advance tax is applicable to individuals or any corporation if their total tax liability exceeds ₹10,000 in a financial year after deducting TDS or TCS. Generally, this covers the following:
- Owners and employers/companies
- Freelancers and self-employed professionals
- People whose income comes from rent, capital gains, or investments
- Salaried people who have some additional taxable income on top of salary
However, senior citizens who are not earning through business or profession are usually exempt from paying advance tax.
Advance Tax Instalment Schedule for FY 2025–26
As per the provisions of the Income Tax Act 1961, advance tax is paid in four instalments during the financial year:
|
Due Date |
% of Total Tax Payable |
|
15 June |
15% |
|
15 September |
45% (cumulative) |
|
15 December |
75% (cumulative) |
|
15 March |
100% (final instalment) |
It is the 15 March payment that finally makes up the total advance tax liability of the financial year.
Consequences of Failing to Pay on Time
Failure to pay advance tax or a payment below the specified limit may result in the filing of interest claim under the Income Tax Act. Interest may be charged under:
- Section 234B – default on advance tax payment
- Section 234C – for deferment of advance tax payments
Such penalties can compound the overall tax burden if payments are delayed.
How to Pay Advance Tax
Taxpayers can efficiently pay advance tax online through the official e-filing portal of the Income Tax Department of India. Payments may be completed online via net banking, debit cards, or authorised digital channels.
Stay Compliant
Taxpayers are encouraged to check their income and calculate any tax bill well before the due date. To avoid penalties and keep things as clean as possible with tax returns during the tax return period, this last advance tax instalment must be paid well in advance.
