The second instalment of Advance Tax Payment for the financial year 2026 (assessment year 2026-27) is due on September 15. If your total tax liability for the year exceeds Rs 10,000, you must pay advance tax in instalments.
Missing the deadline will not only increase your financial burden but also lead to interest charges under Sections 234B and 234C of the Income Tax Act.
Who needs to pay Advance Tax Payment?
Salaried individuals usually have TDS covering them. However, if you earn from capital gains, rent, or a side business, you must pay advance tax on that income. The freelancers and consultants are responsible for advance tax if their tax dues are more than Rs 10,000. Old citizens (60 years or older) are exempt if they have no business income.
How much to pay by September 15?
The income tax department has set four deadlines for Advance Tax Payment
- By June 15: 15 % of the estimated tax liability
- By September 15: 45 % of estimated tax liability (cumulative)
- By December 15: 75 %
- By March 15: 100 %
So, if your annual tax liability is Rs 2 lakh, you should have already paid Rs 30,000 by June. By September 15, your total payment must reach Rs 90,000, meaning you need to pay Rs 60,000 (90,000-30,000). Any shortfall will start incurring interest.
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