Advance Tax Deadlines and Penalties What You Need to Know
10 Jul 2026 · 3 min read
Advance tax is the income tax paid in installments during the financial year rather than as a lump sum at year-end. Any person with estimated tax liability of INR 10,000 or more in a financial year is required to pay advance tax.
The four installment due dates are June 15 (15%), September 15 (45%), December 15 (75%), and March 15 (100%). Senior citizens without business income are exempt from advance tax obligations.
Non-payment or short payment attracts interest under Section 234B (for default in payment) and Section 234C (for deferment of installments). Interest is calculated at 1% per month or part thereof.
Proper tax planning and quarterly review of income estimates can help avoid penal interest. Companies should factor in TDS credits already deducted when computing advance tax installments.
Key areas covered:
- Due dates: Jun 15, Sep 15, Dec 15, Mar 15
- Threshold: INR 10,000 estimated tax liability
- Interest under 234B at 1% per month for default
- Interest under 234C at 1% per month for deferment
- Senior citizens without business income are exempt
- TDS credits should be factored into advance tax computation
