Advance tax deadline September 15: Who needs to pay and how much?
The September 15 advance-tax deadline is approaching for taxpayers whose tax liability is not fully covered by TDS or TCS. The instalment is particularly important for those earning additional income through interest, rent, capital gains, business or professional activities.
- Sep 8, 2026,
- Updated Sep 8, 2026 2:42 PM IST
Tax deadlines 2026: Taxpayers liable to pay advance tax will have to make their second instalment by September 15, 2026, for Tax Year 2026-27. The deadline is particularly relevant for those whose tax liability is not fully covered through TDS or TCS during the year.
Advance tax is income tax paid in instalments during the year based on a taxpayer’s estimated annual income and tax liability. The system requires taxpayers to pay tax as income is earned rather than waiting until the end of the tax year.
Under the regular instalment schedule, taxpayers are required to pay at least 15% of their estimated annual tax liability by June 15, taking cumulative payments to 45% by September 15. The next milestones are 75% by December 15 and 100% by March 15.
Therefore, taxpayers do not have to pay another 45% in September. The September requirement is a cumulative 45% of the estimated advance-tax liability, including the amount already paid in June.
Who needs to pay advance tax?
Advance tax generally applies when a taxpayer’s estimated tax liability for the year is ₹10,000 or more, after accounting for taxes already deducted or collected.
The requirement can extend beyond business owners and professionals. Salaried taxpayers may also have an advance-tax liability if they earn additional income from sources such as bank interest, rent or capital gains, and the TDS deducted does not fully cover their eventual tax liability.
There is an exception for resident senior citizens who do not have income from a business or profession, who are generally not required to pay advance tax.
How much must be paid by September 15?
Taxpayers first need to estimate their total income and tax liability for Tax Year 2026-27. They should then account for TDS, TCS and other applicable tax credits.
For those following the regular advance-tax schedule, cumulative advance-tax payments should reach 45% of the estimated advance-tax liability by September 15.
Capital gains can change the calculation
The calculation can become more complicated when income is irregular. Capital gains, for instance, may arise from the sale of shares or other capital assets after the June instalment has already been paid.
Similarly, business owners, professionals and freelancers may see their income fluctuate during the year. Taxpayers can revise their income and tax estimates as circumstances change and adjust subsequent advance-tax instalments accordingly.
What happens if advance tax is missed?
Failure to pay the required advance tax, or paying less than the prescribed amount, can result in an interest liability for deferment or short payment of advance tax. This can increase the final tax outgo.
Before September 15, taxpayers should review income earned so far, estimate income for the rest of the year and check TDS and TCS credits. Those earning significant interest, rent, capital gains or professional and business income should particularly assess whether their tax has been adequately covered.
Tax deadlines 2026: Taxpayers liable to pay advance tax will have to make their second instalment by September 15, 2026, for Tax Year 2026-27. The deadline is particularly relevant for those whose tax liability is not fully covered through TDS or TCS during the year.
Advance tax is income tax paid in instalments during the year based on a taxpayer’s estimated annual income and tax liability. The system requires taxpayers to pay tax as income is earned rather than waiting until the end of the tax year.
Under the regular instalment schedule, taxpayers are required to pay at least 15% of their estimated annual tax liability by June 15, taking cumulative payments to 45% by September 15. The next milestones are 75% by December 15 and 100% by March 15.
Therefore, taxpayers do not have to pay another 45% in September. The September requirement is a cumulative 45% of the estimated advance-tax liability, including the amount already paid in June.
Who needs to pay advance tax?
Advance tax generally applies when a taxpayer’s estimated tax liability for the year is ₹10,000 or more, after accounting for taxes already deducted or collected.
The requirement can extend beyond business owners and professionals. Salaried taxpayers may also have an advance-tax liability if they earn additional income from sources such as bank interest, rent or capital gains, and the TDS deducted does not fully cover their eventual tax liability.
There is an exception for resident senior citizens who do not have income from a business or profession, who are generally not required to pay advance tax.
How much must be paid by September 15?
Taxpayers first need to estimate their total income and tax liability for Tax Year 2026-27. They should then account for TDS, TCS and other applicable tax credits.
For those following the regular advance-tax schedule, cumulative advance-tax payments should reach 45% of the estimated advance-tax liability by September 15.
Capital gains can change the calculation
The calculation can become more complicated when income is irregular. Capital gains, for instance, may arise from the sale of shares or other capital assets after the June instalment has already been paid.
Similarly, business owners, professionals and freelancers may see their income fluctuate during the year. Taxpayers can revise their income and tax estimates as circumstances change and adjust subsequent advance-tax instalments accordingly.
What happens if advance tax is missed?
Failure to pay the required advance tax, or paying less than the prescribed amount, can result in an interest liability for deferment or short payment of advance tax. This can increase the final tax outgo.
Before September 15, taxpayers should review income earned so far, estimate income for the rest of the year and check TDS and TCS credits. Those earning significant interest, rent, capital gains or professional and business income should particularly assess whether their tax has been adequately covered.