TaxSaral
Tax Year 2026-27·Income Tax Act 2025·Section 425

Advance Tax Calculator

Calculate your quarterly advance tax instalments to avoid interest on late or short payment.

For guidance only. Interest on late payment is not computed here. Verify with a CA before making advance tax payments.

Switched jobs this year? Use the Multiple Employer calculator to get an accurate income figure →

Estimated Income & TDS

Enter your expected annual income and TDS for TY 2026-27

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Standard deduction of ₹75,000 will be applied

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Include TDS already deducted plus TDS yet to be deducted by your employer

Enter your estimated income to see the advance tax schedule

Understanding Advance Tax

Advance tax is the government's mechanism to collect tax throughout the year rather than as a lump sum at filing time. Pay it in four instalments or face interest penalties.

₹10,000 threshold

You must pay advance tax only if your net tax liability (after all TDS credits) exceeds ₹10,000. Below this, pay as self-assessment tax when filing.

4 quarterly instalments

Jun 15 (15%), Sep 15 (45%), Dec 15 (75%), Mar 15 (100%) — cumulative percentages. Missing any instalment attracts 1% per month interest under Section 425.

Salaried + other income

Salaried individuals usually need advance tax only for non-salary income (rent, FD interest, capital gains, freelance) not covered by TDS.

Tax Year 2026-27 — Instalment Schedule (Section 425)

QuarterDue DateCumulative %If missed
Q1Jun 15, 202615% of annual liability1% per month interest (Sec. 425) on shortfall for 3 months
Q2Sep 15, 202645% of annual liability1% per month on shortfall for 3 months
Q3Dec 15, 202675% of annual liability1% per month on shortfall for 3 months
Q4 (final)Mar 15, 2027100% of annual liabilitySection 424 interest from Apr 1 if less than 90% paid by Mar 31

Percentages are cumulative. If your annual liability is ₹50,000, you must have paid at least ₹7,500 by June 15, ₹22,500 by September 15, ₹37,500 by December 15, and ₹50,000 by March 15.

Interest on Short or Late Payment

Section 425 — Instalment shortfall

1% per month (simple interest) on the shortfall in each quarterly instalment. Applied for 3 months per instalment. Calculated on the difference between what you paid and what you should have paid cumulatively.

Section 424 — Overall shortfall

1% per month if you pay less than 90% of your total tax liability by March 31. Interest runs from April 1 of the following year until the date of payment (self-assessment tax or demand date).

Quick check — do you need to pay advance tax?

YESYou have income beyond salary not covered by TDS (rental income, bank interest, freelance fees, capital gains) and combined net tax exceeds ₹10,000
YESYou switched employers and your combined TDS is under-deducted (use the Multiple Employer calculator to check)
NOYou are a salaried employee with correct TDS deducted by your employer and no other significant income
NOYou are a senior citizen (age 60+) with no business or professional income (Section 425 exemption)

Common questions

Who is required to pay advance tax?+
Any taxpayer whose net tax liability (total tax due minus TDS) exceeds ₹10,000 in a financial year must pay advance tax. This includes salaried individuals who have additional income beyond their salary — such as rental income, bank interest, capital gains, or freelance fees — that is not fully covered by TDS. If your only income is salary and your employer deducts TDS correctly, you are typically covered.
What are the four advance tax instalment due dates?+
Q1: 15% of annual liability by June 15, 2026. Q2: 45% (cumulative) by September 15, 2026. Q3: 75% (cumulative) by December 15, 2026. Q4: 100% by March 15, 2027. Missing these dates attracts interest under Section 425 at 1% per month on the shortfall.
Are senior citizens exempt from advance tax?+
Yes. Senior citizens (age 60 or above during the financial year) who do not have income from business or profession are exempt from paying advance tax under Section 403. They can pay the entire tax as self-assessment tax before filing, without any Section 425 interest penalty.
What if I underestimate my income?+
If your advance tax payments fall short of 90% of your actual tax liability, interest under Section 424 applies at 1% per month from April 1 to the date of payment. Additionally, if any individual instalment was short, Section 425 interest applies on that instalment's shortfall for 3 months. This calculator helps you plan based on your best estimate for the full year.
How do I pay advance tax?+
Advance tax is paid through Challan 280 (ITNS 280) on the income tax e-filing portal (incometax.gov.in). Select 'Advance Tax' as the payment type and enter your PAN, assessment year (2027-28), and amount. Keep the challan receipt — it's your proof of payment.
I have capital gains during the year. How do I handle advance tax?+
Capital gains are often unpredictable (you don't always know in advance when you'll sell an asset). The law provides some relief: for capital gains arising in the 3rd or 4th quarter, you can include them in your Q3 or Q4 instalment estimate respectively. If a gain arose late in the year and you couldn't reasonably estimate it earlier, Section 425 interest is generally not levied for the earlier installments — but Q4 must still catch up to 100%.
Legal reference: Sections 403–408 (advance tax obligation, computation & instalment schedule) · Section 424 (interest for default in payment — old Sec. 234B) · Section 425 (interest for deferment of instalments — old Sec. 234C) — Income Tax Act 2025, Tax Year 2026-27 (AY 2027-28).