The last date to deposit the fourth and final installment of advance tax for the financial year 2025–26 is March 15, 2026.
Taxpayers who are required to pay advance tax must ensure that 100% of their total tax liability is paid by this date.
If the payment is not made on time, the Income Tax Department may charge interest and penalties.
When Is Advance Tax Payable?
Many people think that filing an Income Tax Return (ITR) is enough, but in some cases they also need to pay advance tax.
If a person’s total tax liability for the year is more than ₹10,000,
and the remaining tax after deducting TDS, TCS, and other tax credits is still above ₹10,000, then that person must pay advance tax.
However, senior citizens whose income comes only from pension or interest and who do not have any business or professional income are not required to pay advance tax.
Who Needs to Pay Advance Tax?
Advance tax is usually required for people who earn income from sources other than salary. This includes:
Freelancers or consultants
People who earn capital gains from shares or mutual funds
Individuals earning rental income
People earning interest from fixed deposits or other investments
Business owners
If a salaried employee’s entire tax is already deducted by the employer through TDS, they usually do not need to pay advance tax.
Salaried Employees Should Also Be Careful
In some situations, even salaried individuals may need to pay advance tax.
For example, if someone earns stock market profits, cryptocurrency gains, or any side income during the year, they may have to calculate the tax on that extra income and pay advance tax accordingly.
Advance Tax Schedule for FY 2025–26
The government has fixed the following advance tax payment schedule for the financial year 2025–26:
June 15, 2025: Pay 15% of the total tax
September 15, 2025: Pay 45% of the total tax
December 15, 2025: Pay 75% of the total tax
March 15, 2026: Pay 100% of the total tax
What Happens If You Pay Late?
If advance tax is not paid on time, the Income Tax Department may charge interest under Sections 234B and 234C.
Experts advise that if someone receives additional income during the year, such as bonuses, dividends, or capital gains, they should include the tax on that income in the next advance tax installment.
If any income is received after March 15, the tax on that income must be paid by March 31.
