The month of June is especially important for taxpayers, as it is an important deadline for advance tax. The last date for depositing the first installment of advance tax is June 15, 2026. Taxpayers whose annual tax liability is more than ₹10,000 will have to make this payment on time; Failure to do so may result in higher interest rates.
What is advance tax?
Advance tax is a pre-payment of income tax, which is paid in installments throughout the year instead of a lump sum at the end of the year. This is often called the “pay as you earn” scheme. If your tax liability is more than ₹10,000, payment is required.
Who pays advance tax?
Advance tax is paid by both business owners and salary earners. For example, you may have to pay tax on income from sources like bank fixed deposits (FD), rental income, capital gains, dividends or freelance work.
Schedule of advance tax payment:
The due date of the first installment (15% of tax) is June 15, while the due dates of subsequent installments are September 15 (45%), December 15 (75%) and March 15 (100%).
What will happen if advance tax is not paid on time?
If advance tax is not paid on time or less amount is paid, higher interest is charged under Section 234B and 234C of the Income Tax Act.
How to pay advance tax at home?
To pay advance tax online yourself, first go to the e-filing portal and click on the ‘e-Pay Tax’ section. Select assessment year, tax type (advance tax) and challan 280. Then, enter your PAN and other required information. Finally, make the payment using debit card or net banking. Once the transaction is complete, you will receive an invoice receipt. You must keep this receipt safely.