Advance Tax Due Dates for FY 2025-26

Advance Tax Due Dates for FY 2025-26

OVERVIEW: Staying compliant with tax regulations is crucial for every Indian entrepreneur. One of the most important responsibilities is the timely payment of advance tax. This "pay-as-you-earn" system ensures a steady revenue flow for the government and prevents a heavy tax burden on you at the end of the financial year. This guide provides a definitive breakdown of all the advance tax due dates for the Financial Year 2025-26 (corresponding to the Assessment Year 2026-27), helping you plan your finances and avoid penalties.

What is Advance Tax?

Advance tax is, quite simply, income tax paid in advance instead of as a lump sum at the end of the year. It is the income tax that you pay during the financial year on your estimated income. The legal framework for this is laid out in the Income Tax Act, 1961. As per Section 208 of the Income Tax Act, 1961, every person whose estimated tax liability for the financial year is ₹10,000 or more is required to pay advance tax. This applies to all taxpayers, including salaried individuals, freelancers, and businesses, unless specifically exempted.

Due Dates for Advance Tax Payment (FY 2025-26)

The deadlines for paying advance tax are spread throughout the financial year to ease the payment process. It is critical to adhere to these dates to avoid interest penalties. The due dates differ for regular taxpayers and those who have opted for the Presumptive Taxation Scheme. For companies, LLPs, and individuals with non-presumptive business income or other sources of income, the advance tax must be paid in four instalments. The schedule for FY 2025-26 is mandated by Section 211 of the Income Tax Act, 1961.

No
Instalment NumberDue DateCumulative Percentage of Tax to be Paid

1st InstalmentOn or before 15th June 2025Not less than 15% of advance tax

2nd InstalmentOn or before 15th Sept 2025Not less than 45% of advance tax

3rd InstalmentOn or before 15th Dec 2025Not less than 75% of advance tax

4th InstalmentOn or before 15th March 2026100% of advance tax
It is important to note that any tax paid by the 31st of March is also treated as advance tax for that financial year.

For Taxpayers under the Presumptive Taxation Scheme

Taxpayers who have opted for the Presumptive Taxation Scheme under Section 44AD (for businesses) or Section 44ADA (for professionals like doctors, lawyers, etc.) have a much simpler compliance requirement. Instead of four instalments, they are required to pay their entire advance tax liability in a single instalment.
  1. Due Date: On or before 15th March 2026
  2. Amount: 100% of the advance tax liability.

What Happens if You Miss the Advance Tax Due Date?

Failing to pay advance tax or deferring the payment of instalments attracts interest penalties under the Income Tax Act. These provisions ensure that taxpayers adhere to the prescribed schedule. 
  1. Interest under Section 234C: This section is invoked for the deferment of advance tax instalments. If you do not pay the required percentage of tax by the due dates, simple interest at the rate of 1% per month is levied on the shortfall amount for a period of three months (or one month for the last instalment).
  2. Interest under Section 234B: This section applies if you have either failed to pay advance tax altogether or have paid less than 90% of your assessed tax liability. In such cases, simple interest at 1% per month is charged on the shortfall from the 1st of April of the assessment year until the date of tax payment.