Who has to pay advance tax
Anyone whose tax for the year, after TDS, is ₹10,000 or more. That usually means freelancers and consultants, people with rent or large FD interest, and investors with capital gains. If your only income is salary, your employer’s TDS normally covers it.
Residents aged 60 or more with no business or professional income don’t have to pay advance tax.
Due dates for Tax Year 2026-27
| Pay by | Total paid by then |
|---|---|
| 15 June 2026 | 15% of the year’s tax |
| 15 September 2026 | 45% |
| 15 December 2026 | 75% |
| 15 March 2027 | 100% |
If you use presumptive taxation for a business or profession (44AD or 44ADA), you can pay it all in one go by 15 March.
What happens if you miss an instalment
- Late instalment: 1% a month on the shortfall, for 3 months (1 month for the March instalment).
- Less than 90% paid by 31 March: a further 1% a month on the unpaid tax until you pay it.
So paying late costs about 3% of the missed amount, much less than people fear. It is still worth paying on time.
How to pay
On the income tax e-filing portal, go to e-Pay Tax, choose Advance tax (code 100) and pay by net banking, UPI or card. Keep the challan number for your return.
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Questions people ask
Do salaried people have to pay advance tax?
Only if they have other income, like rent, interest, freelance work or capital gains, that pushes the tax left after TDS to ₹10,000 or more. You can also ask your employer to deduct more TDS instead.
What if I miss the 15 December advance tax date?
Pay as soon as you can. Interest is 1% a month on the shortfall for 3 months, so missing ₹50,000 costs about ₹1,500.
Is advance tax due on capital gains?
Yes, but only from the instalment after the gain is made. A gain in January can be covered in the 15 March instalment without interest.