- •If your total tax liability exceeds ₹10,000 after TDS credit, advance tax payment is mandatory under Section 208 of the Income Tax Act.
- •Salaried employees whose entire tax is covered by TDS deducted by their employer generally do not need to pay advance tax separately.
- •Freelancers, business owners, and investors with capital gains, rental income, or business income must compute and pay advance tax on time to avoid Section 234B and 234C penalties.
Advance Tax Calculator FY 2026-27 — Quarterly Schedule & 234C Penalty
Calculate your advance tax installments for FY 2026-27 across all four quarters. Enter your estimated annual income, age, and TDS already deducted to see the exact amount due each quarter — and whether Section 234C interest applies for the Q1 deadline that fell on June 15, 2026.
What is Advance Tax?
Advance tax is the "pay-as-you-earn" tax system under the Indian Income Tax Act. Instead of paying all your tax in one lump sum at year-end, the government requires taxpayers to estimate their annual income and pay tax in four installments spread across the financial year (April to March). This mechanism ensures steady government revenue and prevents taxpayers from accumulating large tax dues at the end of the year.
Any individual, freelancer, business owner, or investor whose estimated tax liability for the year exceeds ₹10,000 after accounting for TDS credit is required to pay advance tax under Section 208. Failure to pay on time attracts interest under Sections 234B and 234C.
FY 2026-27 Due Dates and Installment Percentages
For FY 2026-27, the Central Board of Direct Taxes (CBDT) prescribes the following installment schedule:
| Quarter | Due Date | Installment | Cumulative |
|---|---|---|---|
| Q1 (Apr–Jun 2026) | 15 June 2026 | 15% | 15% |
| Q2 (Jul–Sep 2026) | 15 September 2026 | 30% | 45% |
| Q3 (Oct–Dec 2026) | 15 December 2026 | 30% | 75% |
| Q4 (Jan–Mar 2027) | 15 March 2027 | 25% | 100% |
The percentages refer to the cumulative share of your net advance tax (total tax liability minus TDS already deducted). For example, by September 15 you must have paid at least 45% of your net advance tax in total across Q1 and Q2 combined.
Section 234C Penalty for Shortfall
Section 234C of the Income Tax Act charges simple interest at 1% per month on any shortfall in advance tax payment for each quarter. The interest is calculated on the amount by which the advance tax paid falls short of the prescribed percentage:
- Q1 shortfall (less than 15% paid by Jun 15): 1% per month for 3 months
- Q2 shortfall (less than 45% cumulative by Sep 15): 1% per month for 3 months
- Q3 shortfall (less than 75% cumulative by Dec 15): 1% per month for 3 months
- Q4 shortfall (less than 100% cumulative by Mar 15): 1% per month for 1 month
Note that Section 234C interest is separate from Section 234B, which applies if you pay less than 90% of your total tax liability by March 31. Both can apply simultaneously if advance tax payments are systematically insufficient.
Frequently Asked Questions
Q: Who must pay advance tax?
A: Any taxpayer whose estimated income tax liability for the year exceeds ₹10,000 after accounting for TDS must pay advance tax. This includes freelancers, consultants, business owners, and investors with capital gains or dividend income. Salaried employees are typically exempt if their employer deducts TDS covering their full tax liability, but must pay on any additional income such as rent, interest, or capital gains that is not covered by employer TDS.
Q: What is Section 234C interest and how is it calculated?
A: Section 234C levies simple interest at 1% per month on the shortfall between the advance tax actually paid and the prescribed minimum by each quarterly deadline. For Q1, you must have paid at least 15% of your net tax by June 15; if you pay nothing, interest runs for 3 months on the Q1 shortfall amount. For Q2 and Q3, the period is also 3 months, while Q4 attracts interest for 1 month. The interest is added to your total tax dues and is payable along with your self-assessment tax.
Q: How do I pay advance tax via Challan 280?
A: Visit the NSDL TIN portal at tin-nsdl.com and click on "e-Payment of Taxes." Select Challan ITNS 280 for income tax. Choose "Advance Tax (Code 100)" as the type of payment. Enter your PAN, assessment year (2027-28 for FY 2026-27 payments), and tax amount. Pay via net banking or debit card. Keep the counterfoil with the BSR code and challan serial number — you will need these when filing your ITR.
Q: Do salaried employees need to pay advance tax?
A: Salaried employees whose only income is salary — and whose employer deducts TDS accurately — are effectively exempt because their TDS covers the entire tax liability. However, if you earn additional income from sources like bank interest (above ₹40,000 for non-senior citizens), capital gains from stocks or mutual funds, rental income, or freelance work, the tax on that additional income may exceed ₹10,000 and trigger an advance tax obligation. Use this calculator to enter your TDS already deducted and your total estimated income to check whether you need to pay any advance tax.
Last updated: June 2026 · Based on CBDT advance tax schedule for FY 2026-27 · For informational purposes only. Consult a chartered accountant for advice specific to your situation.