Advance Tax: Due Date and Mode of Payment – TY 2026-27

What is Advance Tax?

Advance Tax means the income tax that has been paid by a taxpayer during the Tax Year rather than paying the full tax liability at the end of the year.

When does one pay Advance Tax?

A taxpayer has to pay advance tax if the total amount of tax payable during the Tax Year, after deducting TDS/TCS and any other tax deductions, is ₹10,000 or more.

Advance tax may be paid on the following kinds of income:

• Salary Income
• Income from Business/Profession
• Interest Income
• Capital Gains
• Rental Income
• Any other form of income

Advance Tax Due Dates – TY 2026-27

Due Date	Cumulative Advance Tax Payable
15 June 2026	15%
15 September 2026	45%
15 December 2026	75%
15 March 2027	100%

In the Case of Presumptive Taxation

Taxpayers who fall under the provisions of presumptive taxation pay their advance tax at 100% of the advance tax payable on or before 15th March 2027.

Calculation of Advance Tax

The taxpayer needs to calculate their total income of the year 2026-27 and thereafter calculate the amount of advance tax payable.

The process is:

Estimated Total Income

↓

Less: Eligible Deductions/Benefits

↓

Taxable Income

↓

Income Tax Liability

↓

Less: TDS/TCS

↓

Less: Tax Paid

↓

Advance Tax Payable

Process of Payment of Advance Tax

Step 1: Calculation of Estimated Tax Liability

Calculate the total income and accordingly calculate the income tax liability for TY 2026-27.

Step 2: Deduction of TDS/TCS

Deduct the TDS/TCS which will be deducted as tax credit.

Step 3: Calculating Amount of Advance Tax Payable

Determine whether the remaining tax liability falls within the specified threshold limit.

Step 4: Making the Required Tax Payment

Pay your advance tax using the income tax payment portal.

Step 5: Keep the Challan/Payment Receipt

Post the payment, the taxpayer must keep the tax payment challan and relevant transaction details for reconciliation purpose and filing of ITR.

Quick Advance Tax Calendar – TY 2026-27

15 June 2026 – 15%

15 September 2026 – 45%

15 December 2026 – 75%

15 March 2027 – 100%

What will happen in case Advance Tax is not paid timely?

There may be an interest implication in case of deferment or under-payment of the advance tax, based on the relevant provisions.

Hence, taxpayers need to make it a point to review their estimated income and tax liability throughout the Tax Year.

Advance Tax and ITR

Advance tax payable during TY 2026-27 needs to be reconciled properly when filing the Income Tax Return.

The below reconciliation approach could be helpful:

Income Records – Tax Calculations – TDS/TCS – Advance Tax – Self-Assessment Tax – ITR

Conclusion

Advance Tax plays an important role in the income tax compliance process of taxpayers with sufficient tax liability during the Tax Year.

During TY 2026-27, taxpayers need to estimate their income, calculate their tax liability, deduct the applicable TDS/TCS and pay advance tax as per the prescribed schedule.

Visit Elite Tax Plus for Income Tax Return Filing, Tax Planning, Advance Tax Calculations, Tax Reconciliation and other Income Tax Compliance Services.