Advance Tax Deadline: Taxpayers, take note! The last date for depositing the first installment of advance tax is June 15, 2026. Learn who is required to pay this tax and how to pay it online from home.

Advance Tax Deadline: The month of June is a financially significant month for taxpayers. If your annual tax liability exceeds a certain threshold, it's crucial to remember the advance tax deadline. The last date for depositing the first installment of advance tax for the financial year 2026-27 is June 15, 2026.

According to Income Tax Department rules, taxpayers with an annual estimated tax liability of ₹10,000 or more must pay it on time. Failure to pay advance tax on time or underpayment results in substantial interest.

What is Advance Tax?

Simply put, advance tax is the advance payment of income tax. It's paid in four installments during the financial year, rather than all at the end of the year. This is why advance tax is also known as the "Pay As You Earn" scheme.

Who pays advance tax?

People often think this is only for large businesses, but that's not true. Advance tax is paid by businesses, as well as salaried individuals and freelancers. If you earn income from sources other than your salary and the total tax exceeds ₹10,000, you'll have to pay this tax.

• Interest earned from bank FD
• Rental Income
• Capital Gains from the stock market or mutual funds
• Dividend income
• Earning from freelancing or consultancy

Advance Tax Installments and Important Dates

The government has divided the entire year into 4 parts (installments) for paying advance tax.

• First Installment (June 15, 2026): It is mandatory to deposit 15% of the total estimated tax.
• Second installment (September 15): 45% of the total tax should be deposited.
• Third installment (December 15): 75% of the total tax must be deposited.
• Fourth installment (March 15): 100% of the total tax should be paid.

What will happen if advance tax is not paid on time?

If you miss the June 15th deadline or don't pay your installments on time, the Income Tax Department will crack down on you. Under Sections 234B and 234C of the Income Tax Act, you'll be charged additional interest at the rate of 1% per month on the outstanding tax amount. This further increases your tax burden.

How to pay advance tax online from home? (Step-by-Step Process)

Now you don't need to visit a government office to pay your taxes. You can pay your advance tax yourself using your mobile phone or laptop by following the steps below.

• Step 1: First of all go to the e-filing portal of Income Tax Department incometax.gov.in.
• Step 2: Click on the 'e-Pay Tax' section under Quick Links on the homepage.
• Step 3: Enter your PAN number and verify it through mobile OTP.
• Step 4: After this, select the correct Assessment Year and 'Advance Tax' in the tax type.
• Step 5: Enter your tax amount and other required financial details as asked in the Challan (Challan 280) form.
• Step 6: Now complete the online payment through net banking, debit card or UPI.

PC: Prabhat Khabar