What is Advance Tax?
Advance tax means paying your income tax in instalments during the financial year instead of paying it all at once while filing your return. As per Section 208 of the Income Tax Act, if your total tax liability exceeds ₹10,000 in a year (after TDS), you must pay advance tax.
Who Must Pay Advance Tax?
✅ Salaried individuals with income from other sources (like interest, rent)
✅ Self-employed professionals & freelancers
✅ Businesses with profit income
Focus Keyphrase: Advance tax first instalment
Due Dates for FY 2025–26
| Instalment | Due Date | % of Total Advance Tax Payable |
|---|---|---|
| 1st Instalment | June 15, 2025 | 15% |
| 2nd Instalment | September 15, 2025 | 45% (cumulative) |
| 3rd Instalment | December 15, 2025 | 75% (cumulative) |
| 4th Instalment | March 15, 2026 | 100% |
How to Calculate Your Advance Tax
1️⃣ Estimate total income for FY 2025–26
2️⃣ Deduct eligible exemptions & deductions
3️⃣ Calculate tax as per slab rates
4️⃣ Reduce TDS expected to be deducted
5️⃣ Pay balance as advance tax in instalments
Refer: CBDT Circular No. 06/2025 for extension of return due dates, but advance tax dates remain unchanged.
What If You Miss Paying on Time?
- Interest under Section 234B: If you don’t pay 90% of total tax by March 15.
- Interest under Section 234C: If each instalment is short or delayed.
- Penalties can be up to 1% per month.
Expert Tip:
Many salaried taxpayers ignore interest income or side income when planning tax payments. Always include all sources to avoid surprise interest charges. Use Efiletax’s Advance Tax Calculator to stay on track.
FAQs
Q1. Can salaried employees skip paying advance tax?
➤ Not if they have significant non-salary income and TDS doesn’t cover the tax fully.
Q2. Are pensioners liable?
➤ Yes, unless they qualify with no business income.
Q3. Can I revise my estimate?
➤ Yes, remaining instalments can be adjusted for revised income.
Final Takeaway
Don’t miss your Advance tax first instalment due by June 15. Calculate correctly, pay on time, and avoid penalties.
👉 Need help? Efiletax offers expert assistance for hassle-free advance tax compliance.
Summary
Advance tax first instalment for FY 2025–26 is due by June 15. Check if your tax liability exceeds ₹10,000 after TDS. Pay in four instalments to avoid interest. Efiletax helps you file correctly and on time.