Paying tax as you earn, the instalment dates, and how the interest works
If your total tax liability for the year (after TDS) is Rs 10,000 or more, you must pay advance tax during the year, not in one go at the end. For most taxpayers it is four instalments (15%, 45%, 75% and 100% cumulatively by 15 June, 15 September, 15 December and 15 March). For those on presumptive taxation (44AD/44ADA) it is a single 100% instalment by 15 March. Miss the instalments and simple interest at 1% a month applies under Sections 234B and 234C.
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Who pays, and the dates
You pay advance tax if your tax for the year, after deducting TDS, is Rs 10,000 or more. The instalment schedule depends on your scheme.
Advance-tax instalments (2026-27)
Due date
Non-presumptive (cumulative)
Presumptive (44AD/44ADA)
15 June
15%
-
15 September
45%
-
15 December
75%
-
15 March
100%
100%
tipA resident senior citizen (60+) with no business or professional income is exempt from advance tax under Section 207, you just pay any balance by the filing date.
234A, 234B and 234C interest
Three interest charges can apply, all at 1% a month simple interest. Section 234A is for filing the return late. Section 234B applies if you paid less than 90% of your assessed tax as advance tax (a safe harbour: pay 90%+ by 31 March and there is no 234B). Section 234C is for deferring the instalments, charged where you fall short of each instalment's requirement.
warning234C has a non-obvious safe harbour: you avoid it if you pay at least 12% by 15 June and 36% by 15 September (against the 15% and 45% requirements). But if you fall short, the shortfall is measured against the full 15%/45% requirement, not the safe-harbour figure.
Managing advance tax in practice
The painless way is to move a slice of every receipt into a separate tax-pot account through the year, so paying advance tax is just a transfer, not a shock. For a presumptive taxpayer this is especially easy: estimate the deemed-profit tax and pay it once by 15 March. For others, recompute the estimate before each instalment as income becomes clearer, and top up to the cumulative percentage.
If your total tax for the year, after TDS, is Rs 10,000 or more, yes. For most taxpayers it is four instalments through the year; for those on presumptive taxation (44AD/44ADA) it is a single 100% instalment by 15 March. A resident senior with no business income is exempt under Section 207 and just pays any balance at filing.
When are the advance-tax dates?+
For non-presumptive taxpayers: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March (cumulative). For presumptive taxpayers under 44AD or 44ADA, the whole amount is due in a single instalment by 15 March, much simpler.
What is the 234C safe harbour?+
234C interest is for deferring instalments, but there is a cushion: you avoid it if you have paid at least 12% by 15 June and 36% by 15 September (against the 15% and 45% requirements). The catch is that if you fall short of the cushion, the shortfall is measured against the full 15%/45% requirement, not the 12%/36% figure. Many calculators get this wrong.
How do I avoid an advance-tax shock?+
Move a fixed slice of every receipt into a separate tax-pot account through the year. Then paying advance tax is just a transfer, not a scramble. For a presumptive taxpayer, estimate the deemed-profit tax and pay it once by 15 March; for others, top up to the cumulative percentage before each instalment.