The second instalment of advance tax for the financial year 2026 (assessment year 2026–27) is due on September 15. If your total tax liability for the year is more than Rs 10,000, you are required to pay advance tax in instalments.
Missing the deadline will not only increase your financial burden but also attract interest charges under Sections 234B and 234C of the Income Tax Act.
Who needs to pay Advance Tax?
Salaried individuals are usually covered through TDS but if you have income from capital gains, rent, or side business, you must pay advance tax on that portion. Similarly freelancers, and consultants are liable to pay advance tax if their tax dues exceed Rs 10,000. Senior citizens (60 years or more) are exempt if they have no business income.
How much to pay by September 15?
The income tax department has fixed four checkpoints for advance tax payments:
- By June 15: 15 percent of estimated tax liability
- By September 15: 45 percent of estimated tax liability (cumulative)
- By December 15: 75 percent
- By March 15: 100 percent
So, if your annual tax liability is Rs 2 lakh you should have already paid Rs 30,000 by June. By September 15, your cumulative payment must total Rs 90,000 and you need to pay Rs 60,000 (90,000-30,000). Any shortfall will start attracting interest.
What happens if you miss today’s deadline?
If you fall short of the required 45 percent advance tax by September 15, interest under Section 234C kicks in. You will be charged 1 percent per month on the shortfall for three months (till December).
And if you continue underpaying and fail to deposit at least 90 percent of your total tax by March 31, Section 234B interest will also apply — another 1 percent per month until you pay while filing ITR.
Suppose your estimated tax liability for FY26 is Rs 2 lakh (one transaction in June and another in September) arising from capital gains and other income. Check the table above to know what happens if you don’t pay the tax by September 15.
If the payment is not made till March 31, 2026, further interest at 1 percent a month or part thereof is charged under Section 234B till the filing of returns.
Why you should pay today?
Advance tax is not an extra tax. It’s simply your liability paid in parts. Paying on time helps you avoid unnecessary interest, manage cash flows smoothly instead of facing a huge bill at the time of filing.
If you haven’t, log into incometax.gov.in or use your net banking facility today to pay the second instalment of the advance tax. Waiting until December or March will only inflate your liability.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
