Why You Should Not Miss The June 15, 2026 Advance Tax Deadline

With the first deadline for advance tax for financial year (FY) 2026-27 approaching on June 15, 2026, individuals and businesses must plan to pay their taxes. Under the updated Income-tax Act, 2025, it is important to pay advance tax on time not just for convenience, but also to avoid penalty.

Advance tax is a kind of proactive tax which taxpayers pay in instalments throughout the year instead of paying with retrospective effect. Under Section 403 and 410, taxpayers are required to estimate their total annual income at the very start of the financial year to estimate their tax liability and pay tax accordingly. 

So, any salaried individual, a freelancer, or a business entity whose estimated tax liability is more than Rs 10,000 in a year is required to pay advance tax. More importantly, if the tax deducted at source (TDS) or and Tax Collected at Source (TCS) have already been applied, advance tax still needs to be paid if the remaining tax liability stays above the Rs 10,000 threshold.  

Should One Pay the Full Advance Tax in the First Instalment?

Pranav Sai S, tax expert, ClearTax, says it is not mandatory to pay the full amount in the first instalment. 

“The Income Tax Department allows regular taxpayers to break down their payments across four scheduled instalments throughout the financial year,” he says. 

The Income Tax Department has a set schedule for taxpayers to make advance tax payment. Under this quarterly payment system, the tax payment deadlines are: 

• June 15, 2026: First instalment requires a payment of 15 per cent of the total estimated tax liability

• September 15, 2026: Second instalment requires a payment of up to 45 per cent, minus the amount paid in the first instalment.

• December 15, 2026: Third instalment where the total payment should reach 75 per cent of the total tax liability.

• March 15, 2027: Final instalment to pay the total 100 per cent of the estimated tax for the year.

Why You Should Not Miss the Deadline?

Sai suggests that although one can make full payment in one go close to the final deadline in March, it is better to pay the minimum requested percentage of total tax liability in instalments or it will attract penalty. 

He says, “Interest penalties will be levied for delaying the quarterly schedules, even if you clear the full amount in March. Under Section 234C, an interest of 1 per cent per month is levied on the shortfall of each skipped quarterly instalment (calculated for three months for the June, September, and December deadlines). Under Section 234B, if your total advance tax paid by March 31 is less than 90 per cent of your final tax liability, an additional 1 per cent per month interest is applicable from April 1.”

So, if your estimated tax liability exceeds Rs 10,000, don’t forget to pay the first instalment of tax on it by June 15, 2026.