For the 2026-27 financial year (Tax Year 2026-27 under the Income Tax Act, 2025), the first advance tax deadline is fast approaching. By June 15, 2026, qualifying taxpayers need to remit no less than 15% of their total estimated net tax liability for the year.
Who Must Pay the First Instalment in June 2026?
You are required to pay advance tax (including the June 15 instalment) if:
- Salaried people with extra earnings: If you have a job plus substantial rental income, capital gains (from shares or mutual funds), or interest on FDs that your employer's TDS doesn't fully account for.
- Freelancers & consultants: Self-employed professionals (e.g., coders, designers, writers) whose income isn't routed through payroll TDS.
- Businesses & startups: All partnership firms, LLPs, and domestic/foreign companies earning taxable income in India.
| Condition | Details |
| Net tax liability ≥ ₹10,000 | Your estimated tax liability for FY 2026-27 after deducting TDS/TCS equals or exceeds ₹10,000 |
| Income sources beyond salary | Includes income from: - Fixed deposits/interest - Rent - Capital gains - Freelance/professional income - Business income |
Who is Exempt?
- Senior citizens: Age 60 or above, with no income from business or profession.
- Presumptive taxpayers (Sections 44AD/44ADA): Small businesses and professionals under this scheme skip the four instalments and pay their full advance tax by March 15, 2027.
- Low tax liability: Anyone whose net annual tax due after TDS/TCS is less than ₹10,000.
| Instalment | Due Date | Minimum Cumulative Payment |
| 1st | June 15, 2026 | 15% of tax liability |
| 2nd | September 15, 2026 | 45% of tax liability |
| 3rd | December 15, 2026 | 75% of tax liability |
| 4th | March 15, 2027 | 100% of tax liability |
A note on interest waivers: Under Section 425, no interest will be charged for minor shortfalls if you pay at least 12% by June 15 and 36% by September 15.
Consequences of Missing the June 15 Deadline
- Interest penalty applies for paying less than the required 15% or failing to pay at all.
- Cost: 1% per month for three months on the shortfall amount.
Payment options:
- E-filing portal (quick links, no login required)
- Regular net banking channels
FAQs
How is the 15% advance tax calculated?
Estimate your total income for the financial year (including salary, rent, capital gains, etc.), compute the tax liability on it as per your applicable tax slab, and then calculate exactly 15% of that grand total.
What happens if I miss the June 15 deadline?
If you miss the deadline or pay less than 15% of your liability, you will be liable to pay penal interest under the Income Tax Act at a rate of 1% per month on the deficient amount until the date of payment.
How do I make the payment?
You can pay online via the official Income Tax e-Filing Portal. You will need to use the newly implemented challan forms explicitly designed for the updated Income Tax Act, 2025.
CAclubindia
