If your total tax liability for the year exceeds Rs 10,000 after adjusting TDS and TCS, you are required to pay advance tax. This applies to salaried individuals, freelancers, business owners, and professionals alike. Getting the installments wrong means paying interest under Sections 234B and 234C.
WHO MUST PAY ADVANCE TAX
Any taxpayer whose estimated tax liability for the financial year exceeds Rs 10,000 (after TDS/TCS) must pay advance tax. A resident individual aged 60 or above who does not have income from business or profession is exempt under Section 207.
THE FOUR INSTALLMENT SCHEDULE
Under Section 211, advance tax for FY 2025-26 must be paid in four installments:
15 June 2025: At least 15%
15 September 2025: At least 45%
15 December 2025: At least 75%
15 March 2026: 100%
Each installment is cumulative. By 15 September, you should have paid at least 45% of your total estimated liability.
SPECIAL RULE FOR PRESUMPTIVE INCOME (SECTION 44AD/44ADA)
Taxpayers opting for presumptive taxation under Section 44AD (businesses) or Section 44ADA (professionals) can pay their entire advance tax in a single installment on or before 15 March 2026.
INTEREST UNDER SECTION 234B — NON-PAYMENT
If you fail to pay at least 90% of your assessed tax as advance tax by 31 March, interest under Section 234B applies. The rate is 1% per month on the shortfall, calculated from 1 April of the assessment year up to the date of determination of income under Section 143(1) or regular assessment.
INTEREST UNDER SECTION 234C — DEFERMENT OF INSTALLMENTS
Miss an installment deadline and Section 234C kicks in. Interest is charged at 1% per month for 3 months on the shortfall amount for each quarter where you fell short. For the last installment (15 March), interest runs for just one month on any shortfall.
PRACTICAL TIP
Estimate your tax liability early in the year and set calendar reminders for each due date. If your income is irregular, revise your estimate each quarter. Paying a little extra in earlier installments avoids compounding interest surprises later.
Advance Tax Due Dates for FY 2025-26: Installments, Rates, and Interest
@ca_vikram · 25 Feb 2026 · 2 min read
Vikram Mehta
@ca_vikram
Vikram is a founding editorial team member at TaxSocial covering the GST and indirect-tax beat. His articles unpack GST 2.0, the new slab structure effective September 2025, the post-sale discount reset, the intermediary-services Section 13(8)(b) amendment, the 30-day IRN reporting rule, the GSTR-1A / GSTR-2B / GSTR-3B filing matrix, and the late-fee mechanics that follow when any of these slip. He writes from the perspective of a practitioner running compliance for mid-sized businesses — what the rule actually says, what the GSTN portal will accept on a given date, and what the practical workaround is when the two diverge. He covers MCA filing and ROC compliance topics where they intersect with GST.
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Disclaimer: This content is the author's personal opinion and analysis. It does not constitute professional tax or legal advice. Consult a qualified professional for specific advice on your situation.
@ca_vikram
Vikram is a founding editorial team member at TaxSocial covering the GST and indirect-tax beat. His articles unpack GST 2.0, the new slab structure effective September 2025, the post-sale discount reset, the intermediary-services Section 13(8)(b) amendment, the 30-day IRN reporting rule, the GSTR-1A / GSTR-2B / GSTR-3B filing matrix, and the late-fee mechanics that follow when any of these slip. He writes from the perspective of a practitioner running compliance for mid-sized businesses — what the rule actually says, what the GSTN portal will accept on a given date, and what the practical workaround is when the two diverge. He covers MCA filing and ROC compliance topics where they intersect with GST.
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