The third advance tax instalment for tax year 2026-27 is due on 15 December 2026. By this date you must have paid 75% of your estimated tax for the year, after TDS and TCS credits. This guide covers the due dates, the 75% rule, who has to pay, how to work out the amount, the interest for missing the date, and how to pay online in a few minutes.
Quick answer: Advance tax for tax year 2026-27 is due in four instalments, and the third one falls on 15 December 2026 (Tuesday). By that date you must have paid at least 75% of your total estimated tax for the year, minus the TDS and TCS already credited to you. Pay the balance through Challan 280 on incometax.gov.in.
What is the 15 December advance tax deadline?
15 December 2026 is the due date for the third instalment of advance tax for tax year 2026-27 (financial year 2026-27, assessment year 2027-28). The rule sits in Section 408 of the Income-tax Act, 2025, which replaced Section 211 of the old 1961 Act from 1 April 2026.
The key point is that the percentages are cumulative. The 75% figure is the total you should have paid by 15 December, not an extra 75% on top of what you already paid. If you paid 45% by September, you only need to pay 30% more in December to reach 75%.
Advance tax is the “pay as you earn” system. Instead of paying all your tax when you file your return, you pay it in parts during the year itself. This matters most for people whose income is not fully covered by TDS — freelancers, landlords, investors, and salaried people with side income.
The December instalment is the one people miss most often. June and September feel early, and March feels like the real deadline. But by December you should have paid three-quarters of the year’s tax, and a shortfall here starts costing interest from that date.
What are the advance tax due dates for FY 2026-27?
| Instalment | Due on or before | Minimum cumulative tax to pay |
|---|---|---|
| First | 15 June 2026 (Monday) | 15% |
| Second | 15 September 2026 (Tuesday) | 45% |
| Third | 15 December 2026 (Tuesday) | 75% |
| Fourth | 15 March 2027 (Monday) | 100% |
All four dates for tax year 2026-27 fall on working days, so there is no extension to the next working day this year. If a due date falls on a Sunday or a gazetted holiday in some other year, the deadline shifts to the next working day.
Two numbers from the Income Tax Department show how wide this system is. A record 7.28 crore income tax returns were filed for assessment year 2024-25 by 31 July 2024, up 7.5% from 6.77 crore the year before, according to the Finance Ministry. And advance tax collections in financial year 2025-26 stood at over Rs 1.55 lakh crore by 19 June 2025, up 3.87% over the same period last year, as per Income Tax Department data. Millions of taxpayers pay in instalments every year — the December date is the biggest checkpoint of the year.
Who needs to pay advance tax by 15 December?
You must pay advance tax if your estimated tax for the year, after subtracting TDS and TCS credits, is Rs 10,000 or more. This threshold comes from Section 404 of the Income-tax Act, 2025 (old Section 208). The general liability is in Section 403 (old Section 207).
That covers:
- Salaried people with extra income. Salary alone is usually covered by TDS, but rent, capital gains, freelance work, or interest income can push your remaining tax above Rs 10,000.
- Freelancers and self-employed people. With no employer deducting TDS, advance tax is often the main way they pay.
- Business owners. Profits that are not covered by TDS need advance tax in four instalments.
- Investors. Capital gains, dividends, and interest are common reasons people discover advance tax late.
Two groups do not follow this schedule:
- Resident senior citizens aged 60 or more with no business or profession income are exempt from advance tax altogether.
- Presumptive taxpayers under Section 44AD (small businesses) and Section 44ADA (specified professionals, now Section 58 of the 2025 Act) pay 100% of their advance tax in a single instalment by 15 March 2027. They have no quarterly dates. Our guide to 44ADA for freelancers explains who can use that route.
If your total tax after TDS is below Rs 10,000, you do not need to pay advance tax at all. Check your Form 26AS (now Form 168) on the e-filing portal to see how much TDS has already been credited to you.
How much advance tax do I pay by 15 December?
Work it out in three steps:
- Estimate your total income for the year. Add salary, business or freelance income, rent, capital gains, and interest. This is an estimate — use your income so far and what you expect by March.
- Work out the tax on that income at the rates in force, then subtract TDS and TCS credits and any relief available. This is your advance tax liability. Section 405 (old Section 209) sets out this calculation.
- Take 75% of that figure and subtract what you already paid in June and September. The balance is what you pay by 15 December.
Worked example
Suppose your estimated tax for tax year 2026-27, after TDS, is Rs 2,00,000.
- By 15 June you paid Rs 30,000 (15%).
- By 15 September your total paid reached Rs 90,000 (45%).
- The target for 15 December is Rs 1,50,000 (75% of Rs 2,00,000).
- You have already paid Rs 90,000, so you pay Rs 60,000 more in December.
By 15 March 2027 you pay the remaining Rs 50,000 to reach 100%. If your income estimate changes during the year — a bonus, a capital gain, a lost client — revise the estimate and adjust the next instalment. Paying a little extra is safe: excess advance tax is refunded with your return.
You can check your numbers with our advance tax calculator before you pay.
What changed under the Income-tax Act, 2025?
The Income-tax Act, 2025 took effect from 1 April 2026. For advance tax, the substance stayed the same — the same four dates, the same percentages, the same Rs 10,000 threshold. What changed are the section numbers:
| Old section (1961 Act) | New section (2025 Act) | What it covers |
|---|---|---|
| 207 | 403 | General liability for advance tax |
| 208 | 404 | Payable when net liability is Rs 10,000 or more |
| 209 | 405 | How advance tax is computed |
| 211 | 408 | Instalments and due dates |
| 234B | 424 | Interest when advance tax is below 90% of assessed tax |
| 234C | 425 | Interest for instalment shortfalls |
So when a portal or a CA mentions Section 424 or 425 this year, they mean the same interest rules that used to be Sections 234B and 234C. The old numbers still appear on many sites and in older articles, which is why this guide names both.
What happens if I miss the 15 December deadline?
Missing the date does not bring a separate penalty, but it does bring interest — and the interest is charged even if you catch up later. Two sections apply:
Section 425 (old Section 234C) — instalment interest. If the amount you have paid by an instalment date is below the required percentage, interest is charged at 1% per month on the shortfall. In the 2025 Act this is expressed as a flat charge: 3% of the shortfall at each of the 15 June, 15 September and 15 December dates, and 1% at 15 March. There is no equivalent cushion at 15 December — the 75% test applies as stated.
Section 424 (old Section 234B) — year-end interest. If the total advance tax you paid during the year is less than 90% of your assessed tax, interest of 1% per month applies on the shortfall, from 1 April of the following year until the tax is assessed. Paying self-assessment tax before the intimation is issued stops this clock.
Interest worked example
Take the same Rs 2,00,000 liability. If you have paid only Rs 1,20,000 by 15 December instead of the required Rs 1,50,000, the shortfall is Rs 30,000. Section 425 interest is 3% of Rs 30,000, which is Rs 900. That is on top of the tax itself, and Section 424 interest can apply as well if your total for the year stays below 90%.
Two reliefs worth knowing
- Tolerances. No Section 425 interest is charged if you paid at least 12% by 15 June, or at least 36% by 15 September. These tolerances apply only to the first two dates — there is no tolerance for the December instalment.
- Carve-outs. No interest is charged on a shortfall caused by under-estimating capital gains, lottery, race or card-game winnings, first-time business or profession income, or dividend income — provided you pay the tax in a later instalment or by 31 March.
Our detailed guide to interest under Sections 234A, 234B and 234C works through more examples, including the old and new section numbers.
How to pay advance tax online
Payment is made through Challan 280 on the Income Tax e-filing portal. The whole process takes a few minutes, and you can do it without logging in.
Without logging in:
- Go to incometax.gov.in and open e-Pay Tax under Quick Links.
- Enter your PAN and mobile number, then the OTP sent to your phone.
- Select Income Tax and continue.
- Choose Tax Year 2026-27, Major Head 0021, and Minor Head 100 (Advance Tax).
- Enter the amount and pay by net banking, debit card, or UPI.
- Save the challan receipt and the BSR code — you will need the challan details when you file your return.
With a login:
- Log in to the e-filing portal with your PAN and password.
- Go to e-Pay Tax and choose New Payment.
- Select Income Tax, then Advance Tax (100), and Tax Year 2026-27.
- Pay and save the receipt.
The payment shows in Form 26AS (now Form 168) within a few working days. Check it after paying — if the credit does not appear, the challan details may have an error, and it is much easier to fix now than at filing time.
Advance tax for freelancers and presumptive taxpayers
Freelancers with no TDS on their income usually pay the largest share of their tax as advance tax. Estimate your receipts for the year, apply the tax rates, subtract any TDS your clients deducted, and pay in the four instalments above.
But if you have opted for presumptive taxation, the schedule is different. Under Section 44AD (businesses with turnover up to Rs 3 crore) and Section 44ADA (specified professionals with receipts up to Rs 75 lakh), you pay 100% of your advance tax in one instalment by 15 March 2027. No June, September, or December payment is needed. This is a genuine simplification — but it only works if you stay within the presumptive limits and do not claim actual expenses.
If your income crosses the presumptive limit during the year, or you switch out of the scheme, the normal four-instalment schedule applies from that point. Our 44ADA guide for freelancers covers the eligibility rules and the Rs 75 lakh limit.
Common mistakes to avoid
- Treating 75% as an extra payment. It is cumulative. Paying 75% on top of the 45% already paid means you have paid 120% — safe, but your money sits with the department until refund.
- Forgetting capital gains. A property or share sale in November can push your liability above Rs 10,000 even if your salary TDS looked complete. Re-estimate before December.
- Ignoring the 90% rule. Meeting the 75% December target is not enough on its own. If your total advance tax for the year ends below 90% of your assessed tax, Section 424 interest applies from 1 April.
- Paying under the wrong head. Advance tax is Minor Head 100. Self-assessment tax is Minor Head 300. A payment under the wrong head does not count as advance tax and can trigger interest.
- Waiting until 15 March. The March instalment is the last one, not the only one. Interest for the missed December instalment is charged even if you pay in full by March.
Frequently asked questions
What is the advance tax due date on 15 December 2026?
The third instalment of advance tax for tax year 2026-27 is due on 15 December 2026. By this date you must have paid at least 75% of your estimated tax for the year, after TDS and TCS credits.
What are the advance tax due dates for FY 2026-27?
The four instalments are due on 15 June 2026 (15%), 15 September 2026 (45%), 15 December 2026 (75%), and 15 March 2027 (100%). Each percentage is cumulative — it is the total you should have paid by that date.
Who needs to pay advance tax?
Anyone whose estimated tax for the year, after TDS and TCS, is Rs 10,000 or more. This includes salaried people with extra income, freelancers, businesses, and investors. Resident senior citizens aged 60 or more with no business income are exempt.
Is advance tax applicable to salaried employees?
Yes, if their total tax after TDS is Rs 10,000 or more. A salaried person with only salary income and full TDS usually does not need to pay. Extra income from rent, capital gains, or freelance work is what usually creates the liability.
How do I calculate advance tax for December?
Estimate your total tax for the year after TDS and TCS, take 75% of it, and subtract the advance tax you already paid in June and September. The balance is what you pay by 15 December. Our worked example above uses a Rs 2,00,000 liability: 75% is Rs 1,50,000, less Rs 90,000 already paid, leaving Rs 60,000.
What happens if I do not pay advance tax by 15 December?
Interest applies under Section 425 at 3% of the shortfall for the December instalment. If your total advance tax for the year also stays below 90% of your assessed tax, Section 424 adds 1% per month from 1 April. There is no separate penalty, and you can still pay the shortfall late.
How do I pay advance tax online?
Use Challan 280 through the e-Pay Tax service on incometax.gov.in. Select Income Tax, Tax Year 2026-27, Major Head 0021, and Minor Head 100 (Advance Tax), then pay by net banking, debit card, or UPI and save the receipt.
Can I pay advance tax without logging in to the income tax portal?
Yes. Open e-Pay Tax under Quick Links on incometax.gov.in, enter your PAN and mobile number, verify with the OTP, and complete the payment. No account login is needed, and the payment appears in Form 26AS within a few working days.
Official sources
- Income Tax e-filing portal: incometax.gov.in — e-Pay Tax service and Form 26AS.
- Income-tax Act, 2025 text: incometaxindia.gov.in — Sections 403, 404, 405, 408, 424 and 425.
- Central Board of Direct Taxes: incometaxindia.gov.in — official circulars and ITR filing statistics.
Reviewed by Asuthod Rathod, CA
Last updated: 10 November 2026
Disclaimer: This article gives general information about advance tax for tax year 2026-27. It is not personal tax advice. Tax rules change from time to time — verify the current provisions on the official income tax portal or ask a qualified tax professional before acting.
Editorial byline for eircicai income tax guides — covering the Income Tax Act, 2025, section renumbering, regime comparison, and deductions. Content is reviewed by Asuthod Rathod, CA.