Reviewed by CA & CS Team · Regikart | Last Updated: 6 June 2026 | Reading time: ~8 minutes
| Question | Quick answer |
|---|---|
| What is due on 15 June 2026? | The first advance tax instalment for Tax Year 2026-27 — 15% of your estimated annual tax. |
| Who must pay? | Anyone whose estimated tax for the year, after TDS/TCS, exceeds Rs. 10,000 (Section 208). |
| Who is exempt? | Resident senior citizens (60+) with no business or professional income. |
| Presumptive taxpayers (44AD/44ADA)? | Pay the entire advance tax in one instalment by 15 March 2027. |
| Cost of missing it? | Simple interest at 1% per month under Sections 234B and 234C. |
Most people think of income tax as a once-a-year event in July. It is not. The law expects you to pay tax as you earn it, in four instalments through the year. The first of those for Tax Year 2026-27 falls on 15 June 2026 — and this is the first advance tax instalment governed by the new Income-tax Act, 2025.
This guide explains who is liable, how much the June instalment is, how to pay it, and how the interest under Sections 234B and 234C is triggered so you can avoid it.
What is advance tax?
Advance tax is income tax paid in instalments during the financial year itself, rather than in a lump sum at the end. It is often called the “pay as you earn” system: as income accrues, a portion of the eventual tax is paid ahead.
It applies across income heads — salary, business or profession, capital gains, house property and other sources — once your net tax liability for the year crosses the threshold.
Key terms in one line each:
- Tax Year — under the Income-tax Act, 2025, the single 12-month period (1 April to 31 March) that replaces “financial year” and “assessment year”.
- Assessed tax — your total tax liability for the year, reduced by TDS and TCS already paid.
- Section 234B / 234C — the interest provisions for paying too little advance tax (234B) and for missing the quarterly instalment deadlines (234C).
Who has to pay advance tax?
You are liable to pay advance tax if your estimated tax for the year, after reducing TDS and TCS, exceeds Rs. 10,000. This is set out in Section 208 of the Income-tax Act, 1961 — a provision substantially retained under the Income-tax Act, 2025 for Tax Year 2026-27.
In practice this covers a wide group: salaried employees with significant non-salary income (interest, capital gains, rent), freelancers and professionals, business owners, investors, and non-residents with India-source income.
Who is exempt: a resident senior citizen aged 60 or above with no income from business or profession is not required to pay advance tax.
The four instalment due dates for Tax Year 2026-27
Advance tax is paid in four instalments, each a cumulative percentage of your estimated annual tax.
| Instalment | Cumulative % | Due date |
|---|---|---|
| First | 15% | 15 June 2026 |
| Second | 45% | 15 September 2026 |
| Third | 75% | 15 December 2026 |
| Fourth | 100% | 15 March 2027 |
Presumptive taxpayers declaring income under Section 44AD (business) or 44ADA (profession) are outside this four-instalment schedule. They pay their entire advance tax in a single instalment by 15 March 2027.
How much is the 15 June 2026 instalment?
The first instalment is 15% of your estimated total tax for Tax Year 2026-27. Work it out in three steps:
- Estimate your total income for the year from all sources — salary, business/profession, capital gains, house property, other sources.
- Subtract eligible deductions and compute the tax on the balance under your chosen regime. Then reduce TDS and TCS expected for the year to get your net tax liability.
- Pay 15% of that net liability by 15 June 2026.
How do I pay advance tax?
- Go to the Income Tax e-filing portal at incometax.gov.in and open the e-Pay Tax section.
- Select the correct assessment/tax year and the Advance Tax (100) payment head.
- Enter the amount, choose your payment mode, and complete the transaction.
- Save the challan. You will need the challan details when filing your return to claim credit for the payment.
Made an error in the challan? The portal’s challan correction feature allows changes to the assessment year (within 7 days) and to the major/minor head (within 30 days).
Section 234B vs Section 234C interest
Missing or underpaying advance tax does not invite a flat penalty — it invites simple interest at 1% per month under two distinct sections.
| Section 234B | Section 234C | |
|---|---|---|
| Trigger | Total advance tax paid is less than 90% of assessed tax | A quarterly instalment is short or missed |
| Rate | 1% per month (simple) | 1% per month (simple) |
| Period | From 1 April of the assessment year until the tax is paid | Fixed period per shortfall — 3 months for each of the first three instalments, 1 month for the last |
How to avoid 234C interest — the safe-harbour rule
Section 234C has a built-in cushion for the first two instalments. You do not pay 234C interest on the June or September shortfall if you have paid at least:
- 12% of your tax due by 15 June, and
- 36% of your tax due by 15 September.
There is also a fairness exception: if a shortfall arises because of capital gains or windfall income (such as lottery winnings) that you could not have estimated earlier, no 234C interest applies on that amount — provided you pay the tax on it in the next instalment, or before the year ends if no instalment remains.
Common mistakes to avoid
- Assuming salary means no advance tax. If you have large interest income or capital gains on top of salary, your TDS may not cover the full liability — advance tax can still apply.
- Forgetting capital gains spikes. A big gain in one quarter changes your estimate. Adjust the remaining instalments to stay above the 90% line.
- Paying only at year-end. Paying everything by 15 March avoids most 234B interest but not 234C for the earlier missed quarters.
- Mixing up the regime. Estimate tax under the regime you will actually use; the slab and deduction rules differ.
How advance tax fits the wider picture
Advance tax is paid under Section 208 against your estimated income for Tax Year 2026-27, credited through challans on the Income Tax portal, and finally reconciled when you file your return. Shortfalls invite interest under Sections 234B and 234C. Because Tax Year 2026-27 covers income earned from 1 April 2026, this first instalment is governed by the Income-tax Act, 2025; the underlying liability threshold and instalment scheme are carried over from the earlier Act, though section numbering has been rationalised.
Key takeaways
- The first advance tax instalment for Tax Year 2026-27 — 15% of estimated tax — is due 15 June 2026.
- You are liable if your tax after TDS/TCS exceeds Rs. 10,000; resident seniors without business income are exempt.
- Presumptive taxpayers pay the whole amount once, by 15 March 2027.
- Underpayment invites 1% per month interest under 234B and 234C.
- Pay at least 12% by 15 June and 36% by 15 September to use the 234C safe harbour.
Frequently asked questions
Who is liable to pay advance tax?
Anyone whose estimated tax for the year, after TDS and TCS, exceeds Rs. 10,000 — including salaried people with other income, professionals, business owners, investors and non-residents with India income.
How much is the first instalment due on 15 June 2026?
15% of your estimated total tax liability for Tax Year 2026-27.
Are senior citizens exempt from advance tax?
A resident senior citizen aged 60 or above with no business or professional income is exempt.
Do salaried employees pay advance tax?
Usually their employer’s TDS covers the salary tax. But if they have substantial other income — interest, capital gains, rent — advance tax may still apply on that.
What happens if I miss the 15 June instalment?
Interest at 1% per month applies under Section 234C on the shortfall. You can reduce the impact by using the safe-harbour thresholds and paying the remaining instalments on time.
Can I pay advance tax after the due date?
Yes. Any tax paid before 31 March of the year still counts as advance tax and reduces 234B interest, though 234C interest may already apply for the missed quarter.
Advance tax ki pehli instalment kitni hoti hai?
Tax Year 2026-27 ke liye pehli instalment aapke estimated annual tax ka 15% hoti hai, jo 15 June 2026 tak deni hoti hai.
How do presumptive taxpayers pay advance tax?
Taxpayers under Section 44AD or 44ADA pay their entire advance tax in a single instalment by 15 March 2027 instead of four instalments.
Need help estimating or paying your advance tax?
Estimating tax across multiple income heads — especially with capital gains or freelance income — is where most 234C interest comes from. Regikart’s CA & CS team can compute your instalments and keep you on the right side of the deadlines. Reach us at +91 70444 94804 or [email protected].
Related reading: see our companion guide on Form 16 for FY 2025-26 (due date, TRACES download and the new Form 130) at /blog/form-16-fy-2025-26.
About the author
CA & CS Team
Reviewed by Regikart at Regikart. Want to discuss this in the context of your business?
