Advance Tax Deadline 2026: 5 Things Taxpayers Must Check Before Paying First Instalment

The first advance tax instalment for Financial Year 2026-27 is due on June 15, 2026. Advance tax requires taxpayers to pay income tax during the financial year as income is earned instead of paying the entire liability at the time of filing the income tax return.

The provision is particularly relevant for taxpayers who earn income beyond their salary, such as capital gains, rental income, business profits, or interest earnings. Missing the deadline or paying insufficient tax can result in interest penalties under the Income-tax Act, 2025. Before making the first payment, taxpayers should review their income and tax position carefully.

Who Needs To Pay Advance Tax Before June 15?

Advance tax becomes mandatory when the estimated tax liability for the financial year exceeds ₹10,000 after adjusting TDS and other credits.

The taxpayers who should pay special attention to the June 15 deadline include:

• Freelancers and consultants
• Traders and investors
• Individuals earning capital gains
• Landlords receiving rental income
• Taxpayers with significant fixed deposit interest income
• Business owners and professionals

For the first instalment, taxpayers are required to pay at least 15% of their estimated annual tax liability by June 15.

Are Senior Citizens Required To Pay Advance Tax?

Resident senior citizens aged 60 years or above generally do not need to pay advance tax if they do not have income from a business or profession.

However, senior citizens who earn business or professional income may still be required to pay advance tax if their estimated tax liability exceeds ₹10,000 during the financial year.

What Happens If You Miss The Advance Tax Deadline?

Failure to pay advance tax or underestimating the tax liability can attract interest charges under Sections 424 and 425 of the Income-tax Act, 2025, which correspond to the earlier Sections 234B and 234C of the Income-tax Act, 1961.

Interest is levied at 1% per month for delayed payment, short payment, or non-payment of advance tax. Therefore, taxpayers should review all income sources and ensure that the required instalment is paid on time to avoid additional costs.

Conclusion

With the June 15 advance tax deadline approaching, taxpayers should accurately estimate their annual income, calculate tax liability after adjusting TDS and deductions, and determine whether advance tax provisions apply to them. Timely payment of the first instalment not only ensures compliance but also helps avoid interest penalties that can increase the overall tax burden.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.