For tax year 2026-27, the third advance-tax instalment is listed as due by December 15, 2026, with cumulative payments reaching 75% of estimated annual tax. That is a cumulative target, not a separate instalment.
Section 408(1) of the Income-tax Act, 2025, sets the schedule.
The schedule sets four cumulative milestones during the tax year.
The listed calendar date is December 15. The obligation is to meet the cumulative percentage by that date, after accounting for advance tax already paid.
Section 408(1) is cited for the instalment schedule, which replaces the former Section 211 schedule under the 1961 Act. Practitioners describe the dates and percentages as unchanged under the new law.
For the full tax-year schedule, each percentage below is the cumulative amount due, not the amount to pay separately at that milestone.
| Due date for tax year 2026-27 | Cumulative share of estimated annual tax |
|---|---|
| June 15, 2026 | 15% |
| September 15, 2026 | 45% |
| December 15, 2026 | 75% |
| March 15, 2027 | 100% |
Subtract earlier payments from 75% of your estimated tax
First estimate your total income and tax for tax year 2026-27. Account for eligible tax deducted at source (TDS) and tax collected at source (TCS), then calculate 75% of the resulting advance-tax amount. Subtract advance-tax instalments already paid to find the amount needed to reach the December milestone.
The calculation is cumulative. Do not pay the target in December without first deducting earlier instalments. If your income changes, revise the estimate and recalculate the balance. Check TDS and TCS credits against Form 26AS or the Annual Information Statement (AIS) as part of that review.
Pay through e-Pay Tax and check the year label before submitting
- Open the income-tax e-filing portal and go to e-Pay Tax.
- Choose the Income Tax payment option and select advance tax, minor head 100.
- Review the tax-year selection shown by the portal before completing payment.
- Save the payment challan after the transaction.
Select tax year 2026-27 in the portal before paying.
Taxpayers who are subject to audit under Section 44AB must pay online.
A balance after TDS and TCS generally triggers advance tax
Advance tax generally applies to anyone whose tax for the year, after TDS and TCS, is ₹10,000 or more under Section 404 of the Income-tax Act, 2025. Individuals, firms and companies may fall within the rule. The calculation is based on the expected tax liability, not only on whether you receive a salary.
Salary TDS may not cover other taxable income. Rent, interest, capital gains, dividends and freelance earnings can raise the year’s liability beyond the amount deducted from salary. If those sources apply to you, include them when updating the estimate rather than relying only on payroll withholding.
A specific exception applies to a resident individual aged 60 or older who has no business or professional income. That person is exempt from advance tax under Section 403(3). The exemption depends on both residence and the absence of business or professional income; age alone does not establish eligibility.
The senior-citizen exemption and presumptive schedule depend on the taxpayer’s case
| Taxpayers or income situation | Schedule or treatment described for tax year 2026-27 |
|---|---|
| Eligible resident taxpayers aged 60 or older with no business or professional income | Exempt from advance tax under Section 403(3) |
| Eligible presumptive taxpayers under Sections 44AD or 44ADA, now Section 58 | Pay 100% in one instalment by March 15, 2027 |
| Qualifying income arising later in the year | Include it in the estimate and apply any relief only if its conditions are met |
The March-only schedule is described for eligible taxpayers under Sections 44AD and 44ADA. Do not assume that every taxpayer using a presumptive method follows that same payment timetable.
Income that arises later can change the calculation. Include it in your estimate.
A December shortfall and a year-end default use different tests
A shortfall against the December instalment target can attract interest of 3% of the relevant shortfall. That is equivalent to 1% a month for three months. The interest calculation is distinct from the cumulative payment percentage. The June and September instalments have different interest tolerances, but no equivalent December tolerance is described.
A separate year-end test applies under Section 424, formerly Section 234B. If advance tax paid for the year is below 90% of assessed tax, interest of 1% per month applies. This is not the same test as whether you reached the December cumulative target.
Tax paid by March 31, 2027, still counts as advance tax for the year under Section 408(3).
Check the cumulative total, tax category and challan before you finish
- Recalculate the estimated tax and subtract earlier advance-tax payments. Do not treat the December target as an additional instalment.
- Check TDS and TCS credits against Form 26AS or AIS, and update the estimate if your income has changed.
- Select advance tax, not self-assessment tax, when making the payment.
- Check the portal’s year label and save the challan.
- Confirm whether a senior-citizen exemption or a presumptive-tax schedule applies to your specific circumstances. Excess advance tax can be adjusted against the final liability or refunded.
Recalculate the amount needed to reach the cumulative target and complete the payment through e-Pay Tax before December 15, 2026.
