Advance Tax Calculator
India — FY 2026-27 (Tax Year 2026-27)

Advance tax is the income tax payable in instalments during the same year in which the income is earned, rather than at the end of the year. For FY 2026-27 it is governed by Sections 404-408 of the Income-tax Act, 2025 (the former Sections 207-211 of the 1961 Act) and is required of any taxpayer whose tax payable for the year — after subtracting TDS and TCS — is ₹10,000 or more. Applies to salaried taxpayers (if non-salary income like rent, capital gains, dividends pushes liability past ₹10,000), self-employed professionals, business income, freelancers, F&O traders, capital gains realisers, and rental landlords. Resident senior citizens (60+) with NO business or professional income are completely exempt under Section 404 — they pay only on filing.

The numbering changed; the money did not. The Income-tax Act, 1961 stands repealed on 1 April 2026 and the Income-tax Act, 2025 governs income earned from that date — so FY 2026-27 is the first 'Tax Year 2026-27' under the new law, and the new Act also replaces the old 'previous year' and 'assessment year' pair with the single term tax year. Every substantive advance tax rule carries over unchanged: the ₹10,000 threshold (now Section 404, formerly 207/208), the four instalments at 15% / 45% / 75% / 100% on 15 June, 15 September, 15 December and 15 March (now Section 408, formerly 211), the senior-citizen exemption, the presumptive single-instalment rule, and 1% per month interest (now Sections 423, 424 and 425 — formerly 234A, 234B and 234C). Slabs, cess, surcharge and the rebate were left unchanged by Budget 2026. In practice: pay exactly what you would have paid before, but expect the new section numbers on notices and challans.

Four instalments with cumulative minimum thresholds, set by Section 408 of the Income-tax Act, 2025: (1) 15 June 2026 — pay at least 15% of estimated total tax. (2) 15 September 2026 — cumulative 45%. (3) 15 December 2026 — cumulative 75%. (4) 15 March 2027 — cumulative 100%. If a due date falls on a Sunday or public holiday, the next working day applies. Taxpayers under the presumptive scheme (Section 58 of the 2025 Act, which merges the former 44AD, 44ADA and 44AE) have a single instalment — 100% of liability by 15 March. Payment via Challan ITNS-280 (online at incometax.gov.in, or via an authorised bank); retain the BSR code and challan serial number for Form 26AS reconciliation.

Interest under Section 425 of the Income-tax Act, 2025 (the former Section 234C) — 1% per month for 3 months — on the shortfall. Example: if you should have paid ₹1,00,000 by 15 June and only paid ₹70,000, the ₹30,000 shortfall accrues 1% × 3 = 3% interest = ₹900 added to your 15 March liability. The interest is per instalment-period, so multiple missed deadlines compound. Section 424 (the former 234B) kicks in if total advance tax + TDS by year-end is less than 90% of assessed tax — 1% per month from the start of the following year until the date of payment. Section 423 (the former 234A) covers late filing of the return — 1% per month until filed. All three can stack on the same shortfall.

Under Section 404 of the Income-tax Act, 2025 (carrying forward the former Section 207(2)): resident individuals aged 60 or more at any time during the tax year who do NOT have income under 'profits and gains of business or profession'. They pay all their tax at filing time, with no advance instalments. The exemption does NOT apply to resident senior citizens who do have business or professional income — they pay advance tax like anyone else. Non-resident seniors are NOT exempt. The exemption also does not turn on the type of income: a senior citizen's capital gains are still covered by the exemption only because of the no-business-income test — and separately, if tax payable after TDS stays below ₹10,000, no advance tax is due regardless of who you are.

Standard approach: take last year's actual income from Form 16/ITR as the baseline, adjust for known changes (raise, new clients, expected dividends, planned sales). For capital gains realised mid-year, you must include them in the next instalment after realisation — failing to do so attracts Section 425 (ex-234C) interest. For freelancers and consultants under the presumptive scheme (Section 58 of the 2025 Act, the former 44ADA): 50% of gross receipts is deemed profit, with no requirement to maintain books if gross receipts stay within the professional limit. Reduce by anticipated 80C/80D/HRA deductions (old regime only). Adjust estimate at each instalment date as the year unfolds — December and March numbers should be quite accurate.

Yes. Any excess of advance tax + TDS over actual tax liability is refunded after ITR filing. CPC processes refunds typically within 30-60 days of e-verification. Interest at 0.5% per month (6% a year) on delayed refunds — the provision formerly numbered Section 244A, carried into the Income-tax Act, 2025 at the same rate — is added from the start of the following year (or the date of payment if later) until the refund is granted. Common cause of overpayment: a large capital gain expected in Q1-Q2 doesn't materialise by year-end — advance tax already paid based on the expected gain is refunded. There is no penalty for overpaying; the only cost is opportunity cost (your money earns 0.5%/month while government holds it, vs your alternative investment).

TDS deducted by your employer, bank, customers, or other parties throughout the year is credited automatically via Form 26AS and the Annual Information Statement (AIS). At each advance tax due date, subtract YTD TDS from your estimated total annual liability to determine the additional advance tax to pay. Common pitfall: bank TDS on FD interest is deducted at 10% but the FD interest is added to your income and taxed at marginal slab — high earners (30%+ slab) face a gap that advance tax must cover. Crypto TDS at 1% under Section 194S is similar — full crypto LTCG/STCG rate may be 20% or 30%, leaving a 19-29% gap.

Three distinct interest provisions, renumbered by the Income-tax Act, 2025 but unchanged in substance — all charge 1% per month. Section 423 (formerly 234A): late furnishing of the return — 1% per month from the due date until actual filing, on unpaid tax. Section 424 (formerly 234B): shortfall in advance tax — 1% per month from the start of the following year (1 April 2027 for FY 2026-27) until payment, charged if total advance tax + TDS is less than 90% of assessed tax; applies to the shortfall. Section 425 (formerly 234C): instalment-by-instalment deferment — 1% per month for 3 months on each missed instalment, applied only to that shortfall rather than the whole liability. The three compound: missing all four instalments triggers 425, the resulting year-end shortfall triggers 424, and late filing triggers 423 — three layers of interest over overlapping periods. Notices issued for FY 2026-27 onwards will cite the new numbers.

Under the new regime (default since FY 2023-24, optionally elected each year for salaried taxpayers; sticky 'lock-in' for business/profession unless they opt out): no 80C/80D/HRA/LTA deductions — gross taxable income is just gross income. FY 2026-27 (Tax Year 2026-27) slabs, left unchanged by Budget 2026: 0% (≤₹4L), 5% (₹4-8L), 10% (₹8-12L), 15% (₹12-16L), 20% (₹16-20L), 25% (₹20-24L), 30% (above ₹24L). The rebate formerly at Section 87A, now Section 157, is up to ₹60,000 for total income ≤ ₹12 lakh (effectively tax-free). Salaried taxpayers are ALSO entitled to the ₹75,000 standard deduction. Advance tax calculation under new regime is generally simpler — no deductions to track and lower rates make smaller advance instalments.

Yes, but you will owe Section 425 (ex-234C) interest on each earlier instalment you skipped. Paying 100% on 15 March instead of the cumulative 15/45/75/100% per quarter means interest of 1% × 3 months on the 15% you should have paid by 15 June, plus 1% × 3 months on the additional 30% due by 15 September, plus 1% × 3 months on the additional 30% due by 15 December. On a ₹1 lakh liability paid only in March that is roughly ₹2,250 in total. Some taxpayers accept the trade-off deliberately, keeping cash invested where it earns more than the 1%/month interest costs. Taxpayers under the presumptive scheme (Section 58, the former 44AD/44ADA) can legitimately pay 100% by 15 March with no Section 425 interest — theirs is a single-instalment regime under Section 408(2).