Last reviewed: — Heading and text now say tax year 2026-27 under the Income-tax Act, 2025.
Advance Tax Calculator: Tax Year 2026-27
Statutory source: Income-tax Act, 2025 (sections 404, 405, 408, 424, 425) · e-filing tax payments FAQ · CBDT transition FAQs.
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Total income tax payable for the financial year after deducting TDS/TCS
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Threshold: Required only when net tax liability is ₹10,000 or more. Non-business resident senior citizens (60+) are exempt.
For information only. Not tax advice. Verify with a Chartered Accountant before filing.
How Advance Tax Works in India (Pay-As-You-Earn Scheme)
Advance tax for tax year 2026-27 is governed by the Income-tax Act, 2025: section 404 (old section 208) sets who pays, section 405 computes the amount, section 408 (old section 211) sets the instalments, and sections 424 and 425 (old sections 234B and 234C) charge interest. Advance tax for FY 2025-26 (AY 2026-27) stays under the Income-tax Act, 1961. It is India's "pay-as-you-earn" direct taxation mechanism. Under this scheme, taxpayers must discharge their income tax liability in periodic quarterly installments throughout the financial year in which income is earned, rather than deferring the entire tax payment until the annual return filing date.
1. Mandatory Payment Condition (Section 404):
Advance Tax is Required IF: Estimated Annual Tax Payable − (TDS + TCS + Tax Credits) ≥ ₹10,000
2. Statutory Quarterly Installment Schedule (Section 408):
• Installment 1 (On or before 15 June): 15% of estimated total tax liability
• Installment 2 (On or before 15 September): 45% cumulative − amount previously paid (incremental 30%)
• Installment 3 (On or before 15 December): 75% cumulative − amounts previously paid (incremental 30%)
• Installment 4 (On or before 15 March): 100% cumulative − amounts previously paid (incremental 25%)
3. Presumptive Taxation Exception (Sections 58 and 408(2)):
Eligible businesses and professionals opting for presumptive taxation pay 100% of advance tax in a single installment on or before 15 March.
4. Statutory Interest Penalties for Delay or Shortfall:
• Section 425: 1% simple interest per month for 3 months on quarterly installment shortfalls.
• Section 424: 1% simple interest per month from 1 April if cumulative advance tax paid is <90% of assessed tax.
Step-by-Step Worked Example (Default Scenario)
Consider an individual consultant, freelancer, or taxpayer with an estimated net annual income tax liability of ₹1,00,000 after deducting all TDS and TCS credits:
| Instalment Due Date | Statutory Cumulative % | Cumulative Target (₹) | Quarterly Payment Due | Safe-Harbor Threshold | Section 425 Consequence |
|---|---|---|---|---|---|
| 15 June (Q1) | 15% Cumulative | ₹15,000 | ₹15,000 | 12% (₹12,000) | 1% / month for 3 months on shortfall if cumulative <12%. |
| 15 September (Q2) | 45% Cumulative | ₹45,000 | ₹30,000 | 36% (₹36,000) | 1% / month for 3 months on shortfall if cumulative <36%. |
| 15 December (Q3) | 75% Cumulative | ₹75,000 | ₹30,000 | 75% (₹75,000) | 1% / month for 3 months on shortfall from ₹75,000. |
| 15 March (Q4) | 100% Cumulative | ₹1,00,000 | ₹25,000 | 100% (₹1,00,000) | 1% / month for 1 month on shortfall from ₹1,00,000. |
| Full Financial Year Total | 100% Discharged | ₹1,00,000 | ₹1,00,000 (100%) | ≥90% by 31 March | Zero interest penalty under section 424 and section 425. |
Statutory Exemptions & Special Rules
- Senior Citizens Exemption: Resident individuals aged 60 years or older who do not have any income from business or profession are entirely exempt from advance tax.
- Salaried Employees: If salary is the sole income source and the employer appropriately deducts TDS on salary, standalone advance tax payment is unnecessary. However, non-salary income (rent, capital gains, interest) exceeding TDS deductions triggers advance tax obligations.
- Capital Gains & Dividend Influx: Since capital gains and dividend income cannot be accurately forecasted, the rules waive interest penalties provided the tax is deposited in remaining installments after the date of realization.
- Payment Mechanism: Advance tax is deposited online through the Income Tax e-filing portal via Challan 280 / e-Pay Tax selecting "Advance Tax (100)" as the type of payment.
Penal Interest Mechanics (Sections 424 & 425)
The Income-tax Act enforces strict compliance through compounding interest charges on late or inadequate payments:
- Section 425 (Deferment Interest): Charged at 1% simple interest per month for 3 months each on shortfalls at the June 15, Sept 15, and Dec 15 gates (1 month for March 15).
- Safe-Harbor Gateways: Taxpayers are protected from section 425 interest if they pay at least 12% by 15 June and at least 36% by 15 September.
- Section 424 (Shortfall at Year-End): If cumulative advance tax paid by 31 March is less than 90% of the final assessed tax liability, interest at 1% per month runs from 1 April following the tax year until the date of actual payment.
Frequently asked questions
Who is required to pay advance tax in India?
Are senior citizens exempt from paying advance tax?
What interest penalty is levied for missing advance tax deadlines?
What are the four advance tax due dates for individual taxpayers?
How do salaried employees pay advance tax?
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Regulatory baseline, assumptions & legal safety
Operational boundaries and statutory provenance governing this calculation model.
Key Operational Assumptions
- Applicable to individual resident taxpayers whose estimated total income tax liability for the financial year (after deducting TDS and TCS) exceeds ₹10,000.
- Follows the quarterly statutory schedule for non-corporate taxpayers: 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March.
Authoritative Source & Regulatory Baseline
- Authoritative Source
- CBDT FAQs on Budget 2026 (Finance Bill 2026)(Income Tax Department)
- Governing Framework
- Income-tax Act, 2025
- Applicable Period
- TY 2026-27
- Jurisdiction & Verification
- Republic of India • Verified 2026-10-17
Statutory context: Finance Act 2026 made no change to the ₹10,000 advance tax threshold or the quarterly instalment schedule. Advance tax is payable when estimated annual tax liability after TDS/TCS exceeds ₹10,000. Instalments are due quarterly for non-corporate taxpayers.
Model Scope & Specific Limitations
This calculator does not model the following scenarios or provisions:
- Resident senior citizens (aged 60 years or older) having no business or professional income are entirely exempt from advance tax.
- Does not calculate penal interest for default in payment of advance tax or for deferment of instalments.
- Eligible presumptive taxation assessees paying 100% advance tax in a single installment by 15 March are not modeled.
- Estimated schedule for planning purposes; consult official CBDT challan guidelines for tax deposit via e-Pay Tax.
Educational & Legal Disclaimer
This calculator uses the rules and published rates by Income Tax Department for TY 2026-27. Estimated result based on the inputs and assumptions provided.
This calculator uses the rules/data published by Income Tax Department for FY 2026-27 (TY 2026-27). Estimated result based on the inputs and assumptions provided. Educational tool only; not legal or filing advice. Check official guidance for your specific situation.
Estimated Advance Tax Due
₹1,00,000