Advance tax is payable in four instalments — 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. It applies under Section 208 when the estimated tax liability for the year, net of TDS/TCS, is Rs.10,000 or more.
Advance tax is computed on your estimated total income for the year. Each instalment is a cumulative percentage of the net tax liability (tax less TDS/TCS). Shortfall in any instalment attracts interest under Section 234C, and an overall shortfall below 90% attracts Section 234B.
Interest under Section 234C applies at 1% per month on the shortfall for each deferred instalment. A year-end shortfall below 90% of assessed tax also attracts Section 234B.
No. Assessees opting for 44AD or 44ADA pay the entire advance tax in a single instalment by 15 March.
On whichever regime you will finally adopt. Estimate tax under your chosen regime for FY 2026-27. The new regime is the default for FY 2026-27; opt-out via Form 10-IEA if opting for old regime. ✓ Verified June 2026.
This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.