# Advance Tax FY 2026-27: Who Pays, Due Dates, Interest > Who must pay advance tax in FY 2026-27, the four due dates, how to estimate and pay online, and the interest under 234B and 234C if you don't. Source: https://trykosh.com/learn/advance-tax-guide Guide - Income tax # Advance tax: who pays, when, and how much Income tax is meant to be paid as you earn. For salary, your employer handles it through TDS. For interest, rent, freelance income or capital gains, you may have to pay part of the year's tax in advance, in four instalments. Here's how to tell, and what it costs to skip. Updated 25 October 20266 min readBy the Kosh team On this page[Who has to pay advance tax](#who-pays)[The due dates for FY 2026-27](#due-dates)[Worked example: four instalments](#worked-example)[How the interest works](#interest)[How to estimate and pay, step by step](#how-to-pay)[Worked example: a big sale mid-year](#capital-gains-example)[A tip for salaried people](#salaried-tip)[Common mistakes](#mistakes)[FAQs](#faq) ## Who has to pay advance tax You need to pay advance tax if your estimated tax for the year, **after subtracting TDS and TCS, is INR 10,000 or more**. That rule applies to everyone, salaried or not. In practice it catches: - **Freelancers and consultants**, whose foreign clients deduct no Indian TDS and whose Indian clients deduct only 10% or 2%. - **Salaried people with other income**: FD interest, rent, dividends, a side business, or capital gains from shares and funds. - **Business owners** and professionals of every kind. - **Investors with large gains** in a year, such as from selling property or a big fund redemption. Resident senior citizens aged 60 or more who have **no business or professional income** don't have to pay advance tax; they can pay the balance as self-assessment tax before filing. A salaried person whose only income is salary normally needn't think about it either, since the employer's TDS covers the year. ## The due dates for FY 2026-27 Advance tax instalments for FY 2026-27 Pay by Cumulative share of the year's tax Presumptive scheme (44AD/44ADA) 15 June 2026 15% Nothing 15 September 2026 45% Nothing 15 December 2026 75% Nothing 15 March 2027 100% 100% If you declare income under the presumptive scheme (the old 44AD and 44ADA, now section 58 of the Income-tax Act, 2025), you can pay the whole amount in one go by 15 March. Payments made by 31 March still count as advance tax for the year, though the 15 March shortfall attracts a month's interest. ## Worked example: four instalments Farhan is a consultant who expects to owe INR 3,00,000 of tax for the year, of which INR 1,20,000 will be covered by TDS from Indian clients. His advance tax is the balance, **INR 1,80,000**. The [advance tax calculator](/tools/advance-tax-calculator) splits it: INR 1,80,000 of advance tax, four instalments Pay by This instalment Paid so far 15 June 2026 INR 27,000 INR 27,000 15 September 2026 INR 54,000 INR 81,000 15 December 2026 INR 54,000 INR 1,35,000 15 March 2027 INR 45,000 INR 1,80,000 If Farhan pays nothing during the year and settles the full INR 1,80,000 when he files in July, the [income tax interest calculator](/tools/income-tax-interest-calculator) puts the interest at about **INR 16,290**: INR 9,090 under section 234C for missing the instalments and INR 7,200 under 234B for paying less than 90% by 31 March. Paying on schedule costs nothing extra. ## How the interest works - **234C (late or short instalments):** 1% a month on the shortfall, for 3 months for each of the first three instalments and 1 month for the last. You're safe on the June and September instalments if you've paid at least 12% and 36% of the year's tax by those dates. - **234B (not enough by year-end):** if advance tax paid by 31 March is less than 90% of the tax due, 1% a month on the shortfall from April until you pay. - **234A (late return):** 1% a month on unpaid tax after the due date, until you file. - **Capital gains and windfalls:** if a shortfall is caused by capital gains, dividends or winnings you couldn't have predicted, there's no 234C interest as long as you pay the tax on them in the instalments remaining after the income arises. Pay in the next instalment after a big sale. ## How to estimate and pay, step by step 1. **Estimate the year's income** by early June: salary, interest, rent, freelance receipts, and gains already booked. Be realistic, not optimistic. 2. **Work out the tax** in the regime you'll file under with the [income tax calculator](/tools/income-tax-calculator) (or the [freelancer tax calculator](/tools/freelancer-tax-calculator) if you use 44ADA). 3. **Subtract TDS and TCS** you expect: employer TDS, bank TDS on FDs, TDS by clients. Check AIS during the year to see what's actually been credited. 4. **Pay online** through e-Pay Tax on the [income-tax portal](https://www.incometax.gov.in/): choose the right assessment year, the payment type "Advance tax" (not self-assessment), and pay by net banking, debit card, UPI or NEFT. Save the challan with its CIN. 5. **Re-estimate each quarter.** If income rises, pay more in the next instalment. If it falls, pay less. Overpayment comes back as a refund, with interest. 6. **Report the challans in your return** so they're credited. File by 31 July if you use ITR-1 or ITR-2, or by 31 August for non-audit business and professional income filed in ITR-3 or ITR-4, unless the notified dates change. [Free tool**Advance tax calculator**Split this year's tax into the four advance-tax instalments, net of TDS, so you pay on time and avoid interest.](/tools/advance-tax-calculator)[Free tool**234A, 234B, 234C interest calculator**Paid advance tax late or not at all? Estimate the interest you owe under 234A, 234B and 234C before you file.](/tools/income-tax-interest-calculator)[Free tool**Income tax calculator**Work out your income tax for FY 2026-27 under both regimes in one go. Kosh applies the current slabs, the INR 75,000 standard deduction, the 87A rebate, surcharge with marginal relief and 4% cess.](/tools/income-tax-calculator)[Free tool**Freelancer tax calculator (44ADA)**Freelancers and consultants can pay tax on half their gross receipts without keeping detailed books. See what that means for you in FY 2026-27, how it compares with your real profit, and what's left after TDS.](/tools/freelancer-tax-calculator)[Free tool**Presumptive tax calculator (44AD)**Small traders and businesses can skip detailed books and pay tax on a fixed share of turnover. This calculator works out that deemed profit and the tax on it under both regimes for FY 2026-27.](/tools/presumptive-tax-calculator) ## Worked example: a big sale mid-year Leena is salaried and her employer's TDS covers her salary. In November she sells shares she has held for three years and books a INR 3,00,000 long-term gain. After the INR 1.25 lakh exemption, the tax on it is **INR 22,750**, well above the INR 10,000 threshold, and no one deducts TDS on it. 1. She doesn't owe anything for June or September: the gain didn't exist then, and the law doesn't charge 234C interest on capital gains for instalments that fell before the sale. 2. She pays the full INR 22,750 as advance tax by **15 December**, the first instalment after the sale. If the sale had been in January, 15 March would have been the date. 3. In her return she reports the gain and the challan. No interest is due. If she ignores it until she files in July, 234B interest runs from April at 1% a month on the unpaid amount. The amount is small here, but on a property sale it isn't. ## A tip for salaried people If you're salaried and have other income such as FD interest or rent, you can avoid advance tax altogether: declare that income to your employer and ask them to deduct the extra tax through TDS. It's spread across your remaining salary months and you get no interest bill. For capital gains, many people simply pay a one-off advance tax instalment in the quarter after a large sale. See [capital gains tax](/learn/capital-gains-tax-on-shares-and-mutual-funds). ## Common mistakes - **Choosing self-assessment instead of advance tax** on the challan, or the wrong year. Ask your bank or the portal's grievance desk to correct it; it takes time. - **Forgetting that foreign clients don't deduct TDS.** Freelancers paid from abroad often owe advance tax on all of it. - **Ignoring the INR 12 lakh rebate edge.** Other income that takes you past INR 12 lakh of taxable income can create tax on your whole income, not just the extra. - **Waiting until March.** Unless you're on the presumptive scheme, the first three instalments carry 3 months of interest each when missed. **Where Kosh fits** Kosh reminds you by email before each advance-tax date, using an estimate built from your actual statements. ## Frequently asked questions Who is liable to pay advance tax? Anyone whose estimated tax for the year, after TDS and TCS, is INR 10,000 or more. That commonly includes freelancers, business owners, and salaried people with significant interest, rent or capital gains. Resident seniors aged 60 or more without business income are exempt. What are the advance tax due dates for FY 2026-27? 15% by 15 June 2026, 45% by 15 September 2026, 75% by 15 December 2026 and 100% by 15 March 2027. People using the presumptive scheme for business or professional income can pay the whole amount by 15 March 2027. What happens if I don't pay advance tax? You pay interest of 1% a month: under section 234C for missed instalments and section 234B if less than 90% of the tax is paid by 31 March. On INR 1.8 lakh of unpaid tax settled in July, that works out to about INR 16,000. Do salaried employees need to pay advance tax? Usually not, because the employer deducts TDS on salary. If you have other income such as interest, rent or capital gains and the tax on it is INR 10,000 or more, you either pay advance tax or ask your employer to deduct the extra through TDS. How do I pay advance tax online? Use e-Pay Tax on the income-tax e-filing portal. Choose the correct assessment year and the payment type for advance tax, pay by net banking, card, UPI or NEFT, and keep the challan identification number for your return. ## Sources - [Income Tax Department e-filing portal](https://www.incometax.gov.in/) Written by the Kosh team and checked against the rules in force on 25 October 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting. ## Upload your statement and Kosh does this for you. Kosh reads your bank and card statements, works out your tax under both regimes and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-advance-tax-guide)