Advance Tax Payment Deadline For 2nd Installment FY 2026-27: Check How Much You Need To Pay?

The second instalment of advance tax for FY 2026-27 (AY 2027-28) falls due on 15th September 2026. By this date, taxpayers must have paid 45% of their total estimated tax liability for the year, on a cumulative basis. Miss it, and interest under Section 234C kicks in on the shortfall.

Who Needs To Pay?

Any taxpayer - individual, freelancer, professional, or company - whose total tax liability for the year, after TDS/TCS, is Rs 10,000 or more must pay advance tax. Two common exceptions:

• Resident senior citizens (60+) with no business or professional income are fully exempt under Section 207(2). [Click To Know About - Income Tax For Senior Citizens For FY 2026-27]
• Salaried individuals whose entire tax is already deducted via employer TDS usually have nothing further to pay.

Everyone else - including those with capital gains, rental income, freelance/professional receipts, or business income - falls squarely within this deadline.

Advance Tax Instalment Schedule FY 2026-27

Worked Example

Say your estimated tax liability for FY 2026-27 is Rs 2,00,000, and you already paid Rs 30,000 in June:

What If You Pay Less Than 45%?

Section 234C doesn't penalise every shortfall against the 45% target - it only triggers if you've paid less than 36% of your total tax liability by 15th September. Fall below that, and interest at 1% per month applies for three months on the difference between 45% (less tax already paid) and what you actually paid.

How To Pay?

Advance tax is paid online via Challan No. ITNS 280 on the Income Tax e-filing portal, under "Advance Tax (100)". Keep the BSR code and challan serial number handy - you'll need them while filing your ITR.

What About Presumptive Taxation Taxpayers?

Taxpayers who opt for presumptive taxation under Section 44AD (business) or Section 44ADA (profession) get a partial exemption from this quarterly schedule. They are permitted to pay their entire advance tax liability in one instalment on or before 15th March, without attracting Section 234C interest for missing the June, September, or December cut-offs. This is a common miss - many small business owners and consultants mistakenly compute the June/September percentages for themselves when they're not required to.

What Happens If You Miss The Instalment Entirely?

Beyond the Section 234C interest already covered above, there's a second, larger exposure to watch: Section 234B.

If your total advance tax paid by 31st March falls short of 90% of your final assessed tax, interest at 1% per month applies on the shortfall from 1st April until the date you pay the balance (typically at self-assessment or regular assessment).

In other words, a missed September instalment doesn't just cost you three months of 234C interest - if it snowballs into an overall shortfall by year-end, 234B interest keeps accruing well beyond the financial year. Catching up in September is far cheaper than catching up in July of the following year.

Quick Recap

• Due date: 15th September 2026
• Target: 45% of total estimated tax liability (cumulative)
• Interest-free zone: Paying 36% or more avoids Section 234C interest for this instalment
• Exempt: Resident senior citizens with no business/professional income

FAQs

What is the due date for the 2nd advance tax installment for FY 2026-27?

15th September 2026, for all taxpayers - individuals, professionals, and companies - who have a tax liability of Rs 10,000 or more after TDS for the year.

How much advance tax must be paid by 15th September 2026?

45% of your total estimated tax liability for FY 2026-27, on a cumulative basis, minus whatever you already paid in the June installment.

Is there any relief if I pay slightly less than 45%?

Yes. Under Section 234C, interest applies only if you have paid less than 36% of your tax liability by 15th September. Paying between 36% and 45% avoids interest for this installment, though the shortfall should ideally be cleared in the next installment.

Who is exempt from paying advance tax?

Resident senior citizens (60 years or above) who do not have any income from business or profession are fully exempt under Section 207(2). Salaried employees whose entire tax is already covered by employer TDS also typically have nothing extra to pay.

Do presumptive taxation taxpayers (44AD/44ADA) need to pay by 15th September?

No. They can pay their full advance tax liability in one go by 15th March without any Section 234C interest for missing the earlier instalments.

What if I underestimated my income and paid less than required in September?

You can top up the shortfall in the December or March instalment. Interest already accrued for the September shortfall under Section 234C is a fixed one-time charge (1% per month for 3 months) and doesn't get reversed, but paying the correct cumulative percentage going forward stops further interest from accumulating on that portion.